M-RiCM Risk Analytic Model - The Case of a Telecom Company

Journal Name: 
Journal of Accounting and Finance
Volume: 
Vol. 32 - No. 2
Authors: 
Author Name Designation Organization
Praveena K R
Murali R.S
Abstract: 

As a result of constant changes in the macro and operational environments, organisations are exposed to fascinating combinations of risks that are dynamic. Organisations have been trying to develop various strategies to handle such dynamic risk conditions. Comprehensive approaches to understanding and managing risks through modelling multiple variables and their behaviour are also evolving. This paper discusses an analytic model called M-RiCM that has been developed and implemented in one of the SAARC countries in the telecom sector. The paper seeks to discuss methodologies for profiling of risks and managing them. This directly influences the top management's strategic decision-making for improved quality of corporate governance, reducing the risks that the corporates are facing increasingly. The model is appropriate for organisations that face big data environment with huge number of variables and ever changing external/internal issues to handle.
M-RiCM provides quantitative score in five areas: Strategic, Operational, Financial, Compliance, and Data. The model also provides a Risk-Control Radar and an overall Risk Score, profiling each type of risk based on field level operations data across all the functions. This model is expected to substantially reduce the burden in identifying risks, documenting them, profiling them, and assigning quantitative score, and indicate ways of handling them. The model would dove-tail perfectly with current trends of industry that is moving towards technology upgradation like robotics.
The model can be linked to ERP (enterprises resource planning), CRM (customer relationship management), RPA (robotics process automation), VRI (virtual reality interfaces). The paper provides detailed insights taking the case of telecom sector. The model,  owever, is generic and can be applied to any sector and size of organisations. The paper concludes by giving insights into practical issues and implementation challenges. It discusses recommendations and provides inputs for future research.