Experts for improving risk management by each bank

Experts at a workshop in the capital yesterday stressed the need for the improvement of individual risk management structure by each bank to overcome the current and possible challenges in the country’s banking sector, reports UNB.
They said it needs a better understanding between the board of directors and the management of a bank to take strategies considering its own risks and ground realities for the sake of sustainability of the organisation and the industry as well. FinX, a training institute focusing on banking and finance, arranged the daylong workshop titled ‘Pillar II & ICAAP Policy’ at Biam auditorium.
Addressing the workshop, strategy and risk specialist Sajib Azad said the challenges in Bangladesh’s banking sector are not new but surprising
ones as the world had earlier faced such challenges, but Bangladesh is facing now.
“We should take lesson from something and adopt something. And everyone has the responsibility for this. Neither the regulatory body nor the banks alone can do this. Cultural resilience is important,” said Sajib, also a senior adviser to Bangladesh Institute of Bank Management (BIBM).
Sajib who have an over 17-year experience in different global banks and regulators said the sector needs to move from reactive to proactive to address the risks.
Noting that the sector needs to concentrate on its sustainability and steady growth, he said, “Our banking sector is very critical. So, the banks have a wider role to play in society. And the regulatory body, the banks, their boards of directors and the common people will have to understand that it’s not only a profit-making agency.”
Dipti Rani Hazra, a joint director in Banking Regulation and Policy Department of the Bangladesh Bank, said it requires an understanding between the board of directors and the management to improve the risk management structure individually by each bank.“Each bank needs to takes strategies and maintain the capital considering own risks for the sake of sustainability of the organisation,” she said.
Mentioning that the problem lies in the culture of organisation, she said, “We should increase the levels of both understanding and capacity… The mindset (of board of directors) needs to be changed to face risks considering the ground realities. The risks should be reviewed constantly.”
Risk management specialist Md Jahangir Alam said the central bank, the boards of director, the management and the working force should speak in one voice to overcome the challenges.
“The boards of directors should understand what the central bank says. Unless the risk management is strengthened, the bank will ultimately slip down,” said Alam, also Deputy Chief Risk Officer of AB Bank.

Experts for improving risk management by each bank

Experts at a workshop in the capital yesterday stressed the need for the improvement of individual risk management structure by each bank to overcome the current and possible challenges in the countrys banking sector, reports UNB. They said it needs a better understanding between the board of directors and the management of a bank to take strategies considering its own risks and ground realities for the sake of sustainability of the organisation and the industry as well. FinX, a training institute focusing on banking and finance, arranged the daylong workshop titled Pillar II ICAAP Policy at Biam auditorium. Addressing the workshop, strategy and risk specialist Sajib Azad said the challenges in Bangladeshs banking sector are not new but surprising ones as the world had earlier faced such challenges, but Bangladesh is facing now. We should take lesson from something and adopt something. And everyone has the responsibility for this. Neither the regulatory body nor the banks alone can do this. Cultural resilience is important, said Sajib, also a senior adviser to Bangladesh Institute of Bank Management (BIBM). Sajib who have an over 17-year experience in different global banks and regulators said the sector needs to move from reactive to proactive to address the risks. Noting that the sector needs to concentrate on its sustainability and steady growth, he said, Our banking sector is very critical. So, the banks have a wider role to play in society. And the regulatory body, the banks, their boards of directors and the common people will have to understand that its not only a profit-making agency. Dipti Rani Hazra, a joint director in Banking Regulation and Policy Department of the Bangladesh Bank, said it requires an understanding between the board of directors and the management to improve the risk management structure individually by each bank.Each bank needs to takes strategies and maintain the capital considering own risks for the sake of sustainability of the organisation, she said. Mentioning that the problem lies in the culture of organisation, she said, We should increase the levels of both understanding and capacity The mindset (of board of directors) needs to be changed to face risks considering the ground realities. The risks should be reviewed constantly. Risk management specialist Md Jahangir Alam said the central bank, the boards of director, the management and the working force should speak in one voice to overcome the challenges. The boards of directors should understand what the central bank says. Unless the risk management is strengthened, the bank will ultimately slip down, said Alam, also Deputy Chief Risk Officer of AB Bank.