Risk professionals hold first-ever forum

Friday, 20 January 2012 00:18 - - {{hitsCtrl.values.hits}}

The first Risk Professionals Forum was held yesterday, drawing an audience of businesses, entrepreneurs and individuals alike.

The unique event was brought together under the initiative of Confederation of SAARC Apex Bodies in Sri Lanka in partnership with the Asian Bankers Association, Chartered Institute for Securities and Investment, Bartleet Transcapital and Aptivva.

Central Bank Governor Nivard Cabraal was the Chief Guest.

The full day programme covered a range of issues with specialists and experts sharing key insights.

The forum was held to inform the audience about how to invest wisely and assess risk in a variety of fields, including credit and capital investment as well as requirements for tackling emerging liquidity risks.

Due to increases in foreign direct investment and equity in Sri Lanka, caused by the greater global integration, the subject areas that were covered by this forum are gaining increasing importance.

Cabraal spoke on the issue of integrated risk management framework for banks whilst the ABA Chairman and HNB Chief Executive Officer Rajendra Theagarajah gave a global perspective on risk management.

“Getting capital is tough but generating returns on it is tougher,” said Alok Tiwari, CEO of Apitvaa, who spoke on the issue of Basel II and intregrated risk management implementation in Sri Lanka – Status and Challenges faced.

Following a speech by Tiwari, the panel discussion covered the integrated risk management implementation within Sri Lanka, and as well as covering the country’s current status in the execution of risk management schemes, brought up several of the challenges which face the country in future years.

Panellists were HNB Chief Risk Officer Dilshan Rodrigo, Bank of Ceylon Chief Risk Officer Trevinne Fernandopulle and Commercial Bank Chief Risk officer Sanath Manatunge.

The forum hosted many guest speakers, continuing from morning to later afternoon, as the presentations covered the concept of risk from a variety of angles. Stressing that the rating philosophy influences numerous aspects such as ‘rating volatility, pricing, calculations of expected and unexpected losses, back testing and regulatory and internal capital requirements,’ the forum encouraged banks to model scenarios which would allow them greater control over their businesses enabling them to assimilate new market phenomena into their analysis, managing unexpected circumstance, thus minimising risks.

Ahli United Bank Group Head of Business Information Systems Johann Mendis made a presentation on “IT systems and enterprise risk data management; Global perspective” whilst Tiwari focused on operational risk framework with an emphasis on management and capital calculation.

Bartleet TransCapital Director Nihal Welikala articulated that managing risk and Basle 2 was a journey and not a destination whilst Aptivaa’s Samuel Bhutia gave a presentation on Credit Risk Modeling: Development and Valuation of Rating Modules.” Aptivaa’s V. Mittal’s presentation focused on the International Capital Adequacy Assessment Proess or ICAAP.

Confederation of SAARC Apex Bodies in Sri Lanka Vice President Nawaz Rajabdeen was also present along with Secretary General Upali Ratnayake.