IRM India Affiliate has entered into a knowledge partnership by signing a memorandum of understanding (MoU) with HDFC Asset Management Company Limited (“HDFC AMC”) to enhance the ERM capabilities and share insights through thought leadership projects tailored for the mutual fund industry. IRM is the world’s leading professional body for ERM qualifications and examinations across 140+ countries for over 35 years. IRM provides an ideal pathway (Level 1 to Level 5) for becoming a risk-intelligent leader and certified fellow, recognized across the globe in 143 countries. The designations awarded by the IRM are the world's most highly respected titles for ERM.
HDFC Asset Management Company Limited is one of India's leading asset management companies and a part of HDFC Group. HDFC AMC has gained a reputation for its expertise in managing a wide range of mutual fund products. The Company has a comprehensive Enterprise Risk Management (ERM) framework which is well integrated with its business processes such as strategic planning, operational management and investment decisions to ensure consistent consideration of risks in all decision-making. ERM is a disciplined and continuous process in which risks are identified, analyzed, and consciously accepted or mitigated within approved risk appetite. The company promotes a risk culture where all employees are actively engaged in the identification of risk, seek out problem areas in the organization and look to address them collectively. ERM, at HDFC AMC would continue to evolve, to reflect international best practices that address the changes in the regulatory requirements, organizational structure, newer technologies, dynamic market conditions and the size of the businesses undertaken.
As a part of this knowledge partnership, both IRM India Affiliate and HDFC AMC will be organizing webinars, roundtable meetings, industry meetings and co-creating thought leadership articles towards capacity building aimed at enhancing ERM and risk intelligence for the industry.
Speaking about the collaboration, Mr. Navneet Munot, MD and CEO, HDFC Asset Management Company Limited said: “At HDFC AMC, we believe in proactively envisaging risk, with strong monitoring system and ingrained risk management, at each and every process. The leadership team together with the Board sets the tone by prioritizing risk awareness and accountability, while every team member understands their role in identifying and managing risks. With our deep motivation to extend the expertise further, we join hands with IRM as a knowledge partner to share the best practices industry wide.”
Dr. Leena Vijayvargiy, Chief Risk Officer, HDFC Asset Management Company Limited said: "The knowledge partnership aims to develop and share industry-wide best practices, drawing on HDFC's strategic perspective and years of experience in the AMC business, as well as IRM's expertise in ERM knowledge and training. The synergies between these two worlds can foster a robust, agile and resilient risk culture.”
Hersh Shah, Chief Executive Officer, IRM India Affiliate said: “In the rapidly evolving financial landscape, the mutual fund industry is no exception to emerging risks and opportunities that challenge the traditional risk management frameworks. As the leading professional body for ERM education, we are delighted to welcome HDFC AMC as our knowledge partner to drive best practices in the industry and help build a risk-ready and resilient India.”
While the mutual fund industry has historically grappled with market, credit, and operational risks, it is now navigating a wave of new challenges. Digital advancements have heightened the risks of cybersecurity breaches, jeopardizing proprietary and investor data. Additionally, the growing dependence on sophisticated trading algorithms may lead to unforeseen market behaviors, intensifying systemic threats. The emphasis on Environmental, Social, and Governance (ESG) considerations is altering investor outlooks. Thus, funds which lag in ESG adoption, may face potential capital withdrawals and reputational setbacks. Amid shifting global political landscapes and volatile policy changes, mutual funds are also contending with an intricate array of geopolitical risks affecting market trends. Addressing these contemporary risks demands innovative risk management approaches, ensuring resilience and flexibility in a swiftly transforming landscape.