ESG LECTURE-2 | CS PROFESSIONAL NEW SYLLABUS | ENVIORMENT, SOCIAL & GOVERNANCE
CS ANOOP JAIN・62 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
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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.
