Risk management: Banks urged to embrace information sharing 2 hours ago Banks have been advised to embrace information sharing platforms and improved capacity building initiatives to check risk management failure. Managing Director, Bank of Industry, Ms. Evelyn Oputu, said the emergence of new technologies was already posing a new challenge to the banking industry. This, she said, must be addressed holistically by involving all stakeholders. She spoke through the bank’s Executive Director, Operations, Mr. Mohammed Alkali, at a BOI-sponsored quarterly general meeting of the Committee of Chief Inspectors of Banks in Nigeria in Lagos. According to her, the dearth of skilled inspectors in banks and inadequate capacity building within the sector make effective risk management framework in the nation’s financial system a necessity. Oputu said the current processes within the financial system had been developed in a holistic manner and should not be jeopardised through a disregard for relevant stakeholders. She said, “In the past, risk was being managed in an isolated way. But now, current models have changed this view as processes are being integrated and this makes the action of person affect the whole process. We are working to ensure that we develop frameworks that would enhance risk management processes in the financial system. The role of chief inspectors cannot be undermined.” Oputu added that a risk-based auditing approach would further strengthen the business of banking, and give early warning signals before any action could affect the whole system. First Vice-Chairman of CCIBN, Mr. Abas Alhassan, said the challenges posed by new technologies deployed by the Nigerian financial system to drive new products could only be addressed through effective information sharing among stakeholders. He said, “The fact is that the banking industry has undergone a lot of changes and the way we practise risk management in the past is not the way things are done now. If we do things as they were done before, the banking sector will crash. “Technology has come into play and you see a lot of dimensions, especially through electronic banking platforms. A lot risk management practices that we have today need to take into cognizance the technology interplay and improvement in the financial system as well as product offerings. The traditional system is no longer applicable in the present day Nigeria. “The move towards involving chief inspectors of banks in the risk management processes will aid risk management practices in the industry and help to address new challenges within the sector. The present day challenge has to do with the new technologies being introduced to drive product offerings. We hope to enhance the implementation of risk management frameworks.”
Posted on: Wed, 03 Jul 2013 04:09:31 +0000
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