The Bengal Tiger’s risk management and lessons for businesses

The Bengal Tiger’s robust strength and resilience allow it to endure and thrive despite challenges. Photo: Syed Zakir Hossain

The Bengal Tiger serves as a potent symbol of safety and soundness, embodying qualities that resonate in both natural and institutional realms. By drawing parallels between the tiger's attributes and risk management principles, we can better visualise and be reminded of effective strategies for managing risk.

One key principle of risk management is vigilance and awareness, which involves continuously monitoring potential risks and staying alert to environmental changes. Much like the Bengal Tiger, a keen awareness of its surroundings to detect prey or threats, effective risk management demands constant vigilance and situational awareness to recognise emerging risks.

By creating well-thought-out strategies, organisations can reduce risks or have backup plans that align with their goals. Just as tigers meticulously plan their hunts to catch prey, institutions should incorporate risk management into their planning to foresee and tackle potential challenges.

Adaptability is another essential risk management principle, emphasising the need to swiftly adjust to changing circumstances or new risks to maintain resilience. Tigers exemplify this adaptability by thriving in diverse environments ranging from dense forests or other more adverse ecosystems. Just as adaptability is crucial for their survival, institutions must tailor their risk management strategies to meet new challenges and evolving market conditions.

Strategic planning is key to effective risk management. By creating well-thought-out strategies, organisations can reduce risks or have backup plans that align with their goals. Just as tigers meticulously plan their hunts to catch prey, institutions should incorporate risk management into their planning to foresee and tackle potential challenges.

Strength and resilience are fundamental principles, where building a solid framework and capacity to withstand adverse impacts is crucial for long-term stability. The Bengal Tiger's robust strength and resilience allow it to endure and thrive despite challenges, mirroring the need for organisations to develop strong risk management frameworks backed by sufficient resources that can weather unforeseen adversities.

Efficient resource utilisation is important for managing risks without wasting assets. Tigers hunt wisely, conserving energy to succeed. Similarly, risk management depends on smart resource use to handle risks effectively.

Lastly, stealth and precision are essential in applying risk responses, ensuring that actions are targeted and effective to avoid unnecessary disruptions. The Bengal Tiger is known for its stealth and precision during a hunt, paralleling the need for timely identification  and accuracy of assessments for related risk management actions conducted discreetly if possible, to prevent broader disruptions and maintain operational stability. 

In summary, it would not be surprising to find that some of the instinctive behaviours of the Bengal Tiger which align with key risk management principles, can also be found among many thriving institutions' risk cultures. Their embodiment of vigilance, adaptability, strategic planning, efficient resource use, and precision allows them to thrive and secure sustainable market presence in their environments.

Sabeth Siddique is a former senior banking executive and risk management expert. 

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard