Demand for risk managers is on the rise as Sebi plans to broaden risk management committee requirements for the top 2,000 listed companies, potentially increasing operational costs for firms. In parallel, Tencent will sell its stake in Dream11, and agritech startups are trying to mitigate credit risks in the agricultural lending sector.
In today’s corporate landscape, there is a marked increase in demand for risk managers, primarily driven by the Securities and Exchange Board of India’s (Sebi) plans to broaden its risk management committee requirements. This expansion, which is set to encompass the top 2,000 listed companies, is anticipated to not only enhance corporate governance but also escalate operational costs for firms as they adapt to the new requirements. As companies become more aware of the risks associated with their operations, the necessity for skilled risk managers will grow. This shift is particularly relevant in a time when corporate accountability is under scrutiny, and organizations are striving to adhere to more stringent regulatory standards. Additionally, on the start-up front, significant movements have been noted, such as Tencent’s decision to divest its stake in the popular gaming platform Dream11 to Tiga Investment Pte Ltd for over $150 million. Tencent had previously acquired a substantial equity share in Dream11 back in 2018 when the valuation of the gaming company stood at $750 million. Furthermore, the realm of agricultural financing is witnessing significant transformations as agritech startups navigate credit risks and increase lending services to smallholder farmers. This trend emerges against the backdrop of soaring agricultural loans, prompting the question of whether fintech solutions can effectively address the existing credit challenges.
On September 27, 2024, the business news segment highlights critical developments within the corporate sector, emphasizing the growing need for risk management professionals as mandated by Sebi’s regulatory changes. This regulatory body aims to include an extensive range of firms under its risk management purview, which will fundamentally alter the risk management landscape across industries. In parallel, other significant corporate movements, such as Tencent’s divestiture in Dream11, signal evolving dynamics in investment strategies while the agricultural lending sector continues to innovate through fintech solutions.
In summary, the corporate sector is experiencing pivotal changes that signal an expanding role for risk managers as Sebi implements wider compliance requirements for handling corporate risks. Concurrently, strategic shifts such as Tencent’s stake sale in Dream11 reflect ongoing investment recalibrations amid the increasing financial complexities facing companies. Moreover, the rise of agritech in addressing credit risks for small farmers illustrates the adaptability of fintech solutions in response to growing challenges in the agricultural finance sphere.
Original Source: www.livemint.com
Leave a Reply