Sri Lanka has to do a lot to improve its fiduciary risk management

Fiduciary risk: Failure to handle others’ money properly

When someone handles someone else’s money, the fiduciary obligations require him to manage that money with the same care, diligence, prudence and precaution as if he is handling his own money. If he fails, he is causing a fiduciary risk, according to the newest sub branch in political economics today. Fiduciary risk therefore makes it necessary for societies to make a proper ‘fiduciary risk assessment’ with a view to putting in place an effective mechanism for ‘fiduciary risk management’.