ESG LECTURE-2 | CS PROFESSIONAL NEW SYLLABUS | ENVIORMENT, SOCIAL & GOVERNANCE

CS ANOOP JAIN・2 minutes read

Part A, B, and C of the ESG paper focus on risk management, with Part C worth fewer marks than Part B. Understanding and managing risks are crucial for business success, with examples provided on various types of risks and their impact on companies.

Insights

ESG paper is divided into three parts: environment, social, and governance, with Part A focusing on risk management, while Part B and Part C are more scoring due to content distribution.
Effective risk management is crucial for every business to prevent potential harm, crises, and financial ruin, requiring a comprehensive approach involving proactive steps, staff training, and understanding the impact of risks on business objectives.

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Recent questions

What are the three parts of the ESG paper?
Environment, social, governance
How many marks are Part B and Part C worth?
Part B - 65 marks, Part C - 15 marks
What is the focus of Part A in the ESG paper?
Risk management
Why are Part B and Part C considered more scoring?
Content distribution
How can effective risk management benefit businesses?
Prevent harm, ensure success

Related videos

Summary

00:00

"ESG Paper: Risk Management and Scoring Tips"

ESG paper is divided into three parts: environment, social, and governance.
Part A was discussed in the last class, with Part B worth 65 marks and Part C worth 15 marks.
The ESG module is around 850 pages long, with Part A focusing on risk management.
Part B and Part C are considered more scoring due to the content distribution.
Part A covers legal provisions related to the company, SEBI, insider trading, and more.
The module includes chapters on risk management, crisis management, and ESG risk assessment.
Understanding the practical concept of risk management is crucial for scoring well in the paper.
General content is more challenging to write in one's own words compared to legal provisions.
The method of reading and analyzing content is essential for effective preparation.
Properly framing answers in question-answer form is crucial for success in the ESG paper.

19:31

"Essential Risk Management for Business Success"

Managing risks is crucial for every business to avoid potential harm and ensure success.
It is impossible to eliminate risks entirely, but they can be managed effectively.
Understanding risks involves identifying uncertainties that could impact business objectives.
Risks can lead to crises if not managed properly, emphasizing the importance of risk management.
Health insurance is an example of risk management, ensuring financial security in case of illness.
Analyzing risks through risk analysis helps in making informed decisions to mitigate potential harm.
Managing risks involves taking proactive steps to prevent crises and ensure business continuity.
Quality of products, raw materials, and customer service are key areas to focus on for risk management.
Anticipating and adapting to government regulations is essential to avoid legal issues and maintain compliance.
Effective risk management requires a comprehensive approach involving staff training, pricing strategies, and HR policies.

36:33

"Managing Risks in Business: Essential Strategies"

Management is the focus of this chapter, emphasizing the importance of understanding and managing risks in business.
The text discusses the necessity of managing risks in business to prevent potential destruction.
Classification of risks is highlighted, with a distinction between systematic and unsystematic risks.
The text delves into the impact of risks on individuals, such as the risk of not getting a job or facing competition.
Practical advice is given on managing risks, with an emphasis on enhancing knowledge and skills to succeed.
Examples of risks, including financial and non-financial risks, are provided, such as political risk and liquidity risk.
The text explains the difference between financial and non-financial risks, detailing how they impact businesses.
An example of a financial risk related to government policy changes affecting a company is discussed.
The importance of categorizing risks into systematic and unsystematic categories for effective management is highlighted.
Practical advice is given on managing risks in a company, specifically related to manufacturing poly bags.

57:37

Managing Strategic Risks in Business Operations

The risk of poly bags being banned due to potential government changes is highlighted.
Suggestions are made to diversify the business by producing bags from different materials like cloth or jute.
The importance of managing risks in business is emphasized to avoid potential losses.
An example involving eBay's strategic risk in selling shares to Microsoft is discussed.
The concept of strategic risk in business decision-making is explained.
The negative impact of aggressive advertising strategies on businesses is pointed out.
The significance of strategic risk mitigation through better decision-making is stressed.
The example of a real estate company facing strategic risk due to fluctuating property prices is provided.
The distinction between equity risk and financial risk in investments is clarified.
The case of investors facing equity risk in Satyam due to fraudulent practices by its director is mentioned.

01:14:44

"Company reputation impacts share value and success"

A company's perceived solidity affects share value, which can increase or decrease.
Share value growth indicates a strong company, prompting more share purchases.
Fraudulent activities, like fake salary accounts, can lead to a company's downfall.
Exposed fraud can cause share prices to plummet, leading to significant losses for investors.
Suicides and financial ruin can result from massive losses due to company fraud.
Managing losses involves hedging and diversifying investments to mitigate risks.
Reputation risks, like product failures or scandals, can severely impact a business's success.

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