Soomilduth Bholah, Minister of Financial Services and Good Governance

“Fast-paced technological advances are broadening the range of risks like never before”

As an initiative to promote risk governance and ensure business safety, the Mauritius Institute of Directors (MIoD) and Ernst & Young have launched the “Risk Governance Forum” last Thursday. The event, attended by industry leaders, directors, and risk management professionals, underscores the critical role of collaboration in navigating the complex landscape of modern business risks. Addressing the launch event, Soomilduth Bholah, Minister of Financial services and Good governance, emphasized the necessity of effective risk governance to safeguard organizations and the broader community.

“This is the first time that I am addressing distinguished patrons and members of the Mauritius Institute of Directors,” began Mr. Bholah. “I am deeply privileged for the invitation to be in your midst today. Risk Governance is evolving as a global business discipline and a model to enhance Shareholder Value. The ultimate objective of effective Risk Governance is Safety. Safety of the organizations you lead, and safety of the communities we serve.”

He further elaborated on the need for collaborative approaches in risk governance, noting that the forum would serve as a platform for sharing knowledge and fostering partnerships among risk professionals. “The Risk Governance Forum being launched today will certainly go a long way in ensuring this collaboration. We will not be able to avoid or predict every risk, but we can certainly do better by learning from each other,” he stated.

In his speech, Mr. Bholah acknowledged the rapidly changing risk landscape, driven by technological advances and global interconnectedness. “Fast-paced technological advances and inter-connectedness at global scale are broadening the range of risks and intensifying their complexity like never before,” he explained. “On a daily basis, we are overcome by disturbing bulletins of cyberattacks, terrorist attacks, extreme weather conditions, and the like. Human lives are at risk. Stability is at risk. Property is at risk. Supply chains of food and energy are at risk.”

Given these challenges, the Minister highlighted the importance of establishing strong linkages across organizations and sectors to address emerging risks effectively. “The appropriate response is indeed to establish strong linkages across organizations and sectors, which is what this forum is all about,” he said.

On a daily basis, we are overcome by disturbing bulletins of cyberattacks, terrorist attacks, extreme weather conditions, and the like.

To ensure that the Risk Governance Forum becomes a beacon of knowledge and collaboration, Mr. Bholah encouraged risk professionals to be forward-looking and proactive in their approach to identifying, measuring, and monitoring risks. “It is necessary that risk professionals be forward-looking and constantly on their toes, questioning themselves whether their risk model is effectively identifying, measuring, and monitoring risk, and whether they may be missing any blind spots,” he urged.

The Minister also highlighted the importance of engaging discussions among forum members to address emerging trends, regulatory developments, and innovative risk management strategies. “Engaging discussions will allow members the possibility to probe deeper into emerging trends, regulatory developments, and innovative risk management strategies, and come up with viable solutions,” he said.

Expressing his commitment to fostering a culture of good governance, Mr. Bholah announced that the Financial Services Commission and other agencies under his ministry would actively participate in the forum’s meetings. He also noted that the National Committee on Corporate Governance is currently revising the National Code of Corporate Governance for Mauritius, aligning it with contemporary imperatives, the UN Sustainable Development Goals, and international best practices.

“The call is for Boards,” he stated, emphasizing the crucial role of Boards of Directors in managing risks effectively. “While Government has a crucial role to play in making sure we are equipped to meet the volatile and high-risk environment in which we operate, ultimately, it is the responsibility of Boards of Directors to identify and effectively manage their risks and guide their institutions prudently.”

Mr. Bholah concluded his speech with a note of hope and confidence in the future of the Risk Governance Forum. Quoting from Shakespeare’s Henry IV: “Out of this nettle, danger, we pluck this flower, safety,” the Minister reminded attendees that while risks and dangers are inevitable, greater safety is always within reach through collaboration and effective governance.

With this launch, Mauritius is poised to become a leader in risk governance, providing a model for other regions to follow. The Risk Governance Forum aims to create a future defined by security, resilience, and excellence in governance, reinforcing the nation’s commitment to sustainable business practices and responsible corporate behaviour.