IRM India Affiliate has entered into a knowledge partnership by signing a memorandum of understanding (MoU) with Tata Consumer Products Limited to build resilience and promote the need for and importance of Enterprise Risk Management (ERM) in the FMCG industry. IRM is the world’s leading professional body for ERM qualifications and examinations across 140 plus countries and Tata Consumer Products is an Indian FMCG company and a part of Tata Group.
This proactive approach to identifying, assessing, and mitigating risks has evolved to meet the ever-changing risk landscape in the FMCG industry. TCP has implemented an effective ERM follow-up mechanism by leveraging in-house assessment cum monitoring tools and risk intelligence analytics to, built a team of in-house subject matter experts, and fostered a company-wide inclusion of risk management as an integral part of strategic decision-making.
As a part of this knowledge partnership, both IRM India Affiliate and Tata Consumer Products will be organising webinars, roundtables, and industry meetings, and contributing thought leadership articles towards knowledge building and enhancing ERM and risk intelligence for the sector.
Speaking about the collaboration, Aien Noorul, head of Global Internal Audit and Risk Management at Tata Consumer Products Limited said: "Our collaboration with IRM stands as a testament to our successful deployment of matured ERM practices as well as our commitment to collectively drive adoption of ERM practices across the industry.”
On this collaboration, L Krishna Kumar, executive director and group chief financial officer of Tata Consumer Products Limited said: "We have a well-developed risk management practice in the FMCG industry developed over the past several years. Today, Risk Management is an integral part of decision-making at Tata Consumer Products aided by a robust risk management culture."
In addition, IRM has recently entered into knowledge partnerships with leading organisations including Cipla, UltraTech, IHCL, NIMSME (Ministry of MSME), AICTE (Ministry of Education), and more. IRM India Affiliate has also recently welcomed representatives from international bodies like ISO and COSO as external Board Advisors.
Elaborating on the collaboration with Tata Consumer Products, Hersh Shah, CEO of IRM India Affiliate, said: “This knowledge partnership is a milestone for the FMCG sector as it will help drive the importance of a robust risk culture in the sector, through sharing of best enterprise risk practices across platforms. Our global philosophy is well aligned with TCPL's long-term strategy towards excellence in ERM.”
The key risk areas identified were either related to commodity sourcing, supply chain, sales and distribution, brand equity, regulatory, and cyber risks.