Risk Manager of the Year
Cholamandalam MS Risk Services Ltd
The Review

Cholamandalam MS Risk Services (CMSRSL) has won top honours with its pioneering solutions in risk management and engineering, coupled with solid financial growth

CMSRSL is a joint venture between the Murugappa Group, India and Mitsui Sumitomo Insurance Group, Japan with a technical contribution from Inter Risk, a risk management arm of MSI.

It is the only risk management company in India which works in tandem with an insurance company and has made impressive inroads into various Asian and African markets.

CMSRSL has introduced several firsts in the Indian risk management and risk engineering markets during the past year - for example, thermography, layer of protection analysis (LOPA), etc. It used the predictive maintenance tool of thermography for both electrical and nonelectrical applications like determining the sludge levels in chemical storage tents.

In India, CMSRSL pioneered the use of latest process safety techniques of LOPA for estimation of risk levels with respect to critical facilities like ammonia tanks, distilleries and ammonium nitrate facilities and to evaluate the residual risk levels against the internationally accepted risk tolerance limit. This technique has been received with great appreciation by both statutory authorities and industry.

Under logistics risk management the transit losses pertaining to the transportation of highly valuable cargo like automobiles were studied scientifically and suitable innovative practical solutions were given, thereby reducing the loss ratio to 30%.
Perhaps most importantly, CMSRSL has proved with its consistent growth in financial turnover that risk management and engineering consultancy can be a successful business model even when independent of an insurance company.

Starting with an investment of INR20 million in 1994, CMSRSL registered a turnover of INR27.1 million with a profit before tax figure of INR6.6 million. In financial year 2007 the turnover of the company had increased by 76% and profit after tax had increased by 165%.

The judging panel recognised that CMSRSL has made significant contributions to the development of risk management and risk engineering in India and Asia. But perhaps the truest measure of its success is that other Indian companies have started emulating its successful business model. Worthy winners indeed.