Risk Management – Guidelines for Commercial Banks & DFIs From State Bank Of Pakistan
Posted by admin on Jul 15, 2009
Risk Management – Guidelines for Commercial Banks & DFIs (Click the LInk for detail presentation)
The Importance of Business Risk Management: Developing a Risk Management Plan
Posted by admin on Jul 15, 2009
The Importance of Business Risk Management: Developing a Risk Management Plan
Risk management utilizes the right tools, methods and processes to manage risk. Risk is defined as the probability of an unforeseen incident and its penalty. For a business, exposure to risk could lead to disaster.
Risk can range between over-reliance on a single customer, to the merger of two competitive companies in a business. You can safeguard your business and increase its success rate by having an effective risk management policy in place. By identifying the risks before they occur, you will have the time and space to prepare and to put solutions in place if needed.
A Risk Management Process Involves
• Methodical identification of the risks surrounding the activities of your business.
• Reviewing the probability of the occurrence of events.
• Identifying the events before they create problems and dealing with them accordingly.
• Understanding the events and ways to respond.
• Systematizing the tools required to tackle the penalty.
• Supervising the risk management approach, effectiveness and control.
Risk Management Process Results In
• Improving your decision-making, planning and prioritizing skills.
• Well-organized allocation of the resources and the capital.
• Allows you to anticipate the problems and utilizes the best minimizing amount of fire fighting and
preventing a disaster, which could lead to sever financial crunch.
• Risk management significantly improves the probability of the delivery of the business plan,
within your time frame and budget.
If You Are Venturing Into Something New, Then Risk Management Helps In:
• Risk Identification- Risk management outlines various categories of risks faced by new business
including operational, financial, strategic, compliance related and environmental, political, safety
and health risks.
• Risk Management- Clarifies the importance and events for tackling the risks that your new business establishments may face. This includes the information about the evaluation of various risks and four options for managing each risk. This also helps in outlining some preventive ideas to decrease the likely hood of risks immobilizing your business.
• Business recovery planning- Outlines disaster planning and also minimizes the impact of the disaster on your business and this includes aspects such as data security, employees, insurance policies and equipment.
• Prevention of crime- This outlines crimes disturbing small businesses and derives some simple steps to tackle it.
• Scams-Risk management discusses scams and how they could hamper your business. It also lists the methods that could help to avoid scams such as investigating the source of the scam, keeping and maintaining proceedings and filtering the scam.
• Shop Theft- Risk management discusses theft problems in a business and the areas to protect, such as adopting simple safety measures and by keeping track of the staff and inventory.
• Data Security- This offers a variety of information, which protects the businesses and also secures data. Includes disaster recovery, risk assessment, backups and policies regarding data security.
Risk management may seem scary when you are planning your business. But by having such a plan in place, you can ensure that you protect the viability of your business for the long term.
(Taken from : http://www.morebusiness.com/running_your_business/management/Risk-Managment.brc)
Risk Management Guidelines For Islamic Banking By State Bank Of Pakistan
Posted by admin on Jul 15, 2009
Draft Risk Management Guidelines for Islamic Banking Institutions BY State Bank Of Pakistan ( Click on the link for more Info)
Execs Want New Approach to Risk Management
Posted by admin on Jul 9, 2009
A new Accenture study of 260 chief financial officers, chief risk officers and other executives finds that 85 percent believe their approach to risk-management needs to be revamped. And, while nearly half of respondents said risk management is part of their strategic planning decisions, only 27 percent said it was involved to a great extent in objective-setting and performance management.
Accenture’s 2009 Global Risk Management Study also identified a number of universal problems with risk management functions. For example, more than 80 percent of respondents identified ineffective integration of risk, return and capital issues on decision-making, Lack of alignment between the company’s strategies and its risk appetite, and Insufficient enterprise-wide risk culture as just a few of the common problems in their organizations.
A substantial percentage of respondents, 40 percent, reported that they have or plan to increase their investments in risk management over the next six months. And, 30 percent are considering an increase in future investment, Accenture reported.
William Laurent emphasized the role risk and compliance management plays in the overall survival of a business entity in an Information Management column earlier this year. “As more attention is paid to perfecting corporate performance measurement and risk mitigation, operational transparency and accountability are not always increasing as expected. However, governance, risk and compliance promises a more integrated and standardized approach to performance management and a better means of achieving a measurable improvement in accountability.”
New interim head at Risk Management
Posted by admin on Jul 9, 2009
W. Kendall Chalk, former senior executive vice president and chief credit officer of BB&T, a large regional bank based in Winston-Salem, N.C., has been appointed interim president and CEO of the Risk Management Association (RMA) beginning Tuesday.
Chalk replaces Kevin M. Blakely, who said last month that he would leave RMA to become chief risk officer of Huntington Bancshares in Columbus, Ohio.
RMA board chair Sonny B. Lyles, executive vice president and chief risk officer of Sterling Bank in Houston, said the board wanted to ensure that RMA has a continuity of leadership while it searches for a permanent CEO.
“We asked Ken to take a short break from his retirement to guide RMA as it addresses risk issues during these challenging times,” Lyles said.
“As we re-examine the risk management practices of the last several years, it is vital to the financial services industry that we learn from our successes and failures,” Chalk said.
Chalk has been an active member of RMA throughout his career. He joined RMA’s Carolinas-Virginias Chapter in 1976 and later served as its president. On the national level, he served as board chair in 2005, following four years as a board member. He also chaired the Credit Risk Management Council from 1995-1997.
After having served as chief credit officer of BB&T for 25 years, Chalk retired last September. He played a role in BB&T’s transformation from a one-time eastern North Carolina farm bank into the nation’s 10th largest financial holding company.
He is immediate past chairman of the East Carolina University Foundation and is co-chair of the BB&T Center for Leadership Development at ECU.
Chalk earned both his bachelor’s and master’s degrees in business administration from East Carolina University. He also is a graduate of the Stonier Graduate School of Banking at Rutgers University.
Founded in 1914, Philadelphia-based Risk Management Association is a nonprofit, member-driven professional association whose sole purpose is to advance the use of sound risk principles in the financial services industry. RMA has 3,000 institutional members that include banks of all sizes as well as nonbank financial institutions