In conformity with the Management structure in corporate / Head office , the risk management function in branches / regional offices should be delineated, but has to be built in to the system. Credit Monitoring, which includes obtaining and examining stock / book debt statement, calculation of drawing power, valuation of assets, assigning stock/legal audit […]Read More
Basel Committee described supervisory process “…the supervisory process of the framework is intended not only to ensure that banks have adequate capital to support all the risks in their business, but also to encourage banks to develop and use better risk management technique in monitoring and managing their risks. The Bank’s internal control structure is […]Read More
Background Risk taking is a natural part of banking transactions; the regulatory agency is responsible for creating a sound financial environment by setting the regulatory framework where the supervisory agency monitors the financial viability of banks and checks compliance with regulations. The pitfalls associated with the regulatory capital requirements (cherry picking-capital arbitrage) led to the […]Read More
A consistently growing banking institution survives on perfecting its systems. Here I am writing about one such system that needs to be perfected by banks for perpetual existence. Delegating financial powers to officers (DFP) is the most significant system to manage according to me, after core business process systems. I would place DFP above the […]Read More
Time transforms the risk. If there is no tomorrow there will be no risk. If we had fool proof tools to predict tomorrow, probably life would be much smooth. But we live in a world which is full of uncertainties that is why tomorrow can’t be predicted with precision. If it was only risks & […]Read More
“In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risk“. World history is being rewritten in the shadows of onslaught of pandemic and new heroes are emerging as Corona warriors. Police, para medical staff, ambulance drivers even milk vendors and grocery shop owners have been […]Read More
The objective of Credit Risk Management is to reduce the degree of impairment by arriving at certain mitigating measures after extrapolating the past data and using statistical analysis to decide the prospects of default. The process is continuous which require regular evaluation of portfolio, audit of sample accounts , analysis of data. The major instrument […]Read More
