click for full text

click for full text

Published: Tuesday June 1, 2010 MYT 3:10:00 PM

Risk management should be at all levels

By DALJIT DHESI

KUALA LUMPUR: Risk management should not be a “black-box” discussion that is confined to high level management but should be an enterprise-wide process involving all levels of business functions, according to Bank Negara deputy governor Datuk Zamani Abdul Ghani.

Stressing the importance of risk management, he said: “The top level management is responsible for putting in place a well-defined risk governance framework and formulating the appropriate risk strategies.
“At the operational level, the roles of the business units are to ensure that key risks are appropriately identified, assessed and mitigated.”

Zamani said this in his key note address at the two day International Risks and Risk Management Conference for Insurance Sector 2010. The conference was organised by the The Malaysian Insurance Institute (MII) and supported by the Institute of Risk Management (IRM) of Britain.

He said risk management was a dynamic and iterative process and a continuous cycle, not a one-off exercise. Hence, Zamani added there should be genuine awareness, ownership and accountability of risks throughout the company. Every employee should see himself or herself as a risk manager, he noted

Published: Tuesday June 1, 2010

Risk Management Should Be An Enterprise, Says BNM Deputy Governor
KUALA LUMPUR, June 1 (Bernama) -- Risk management should be an enterprise involving all levels of business functions and should not be confined only to high level management, Bank Negara Malaysia Deputy Governor Datuk Zamani Abdul Ghani said Tuesday.

He said it as important for top level management to be responsible for putting in place a well-defined risk governance framework and formulate appropriate risk strategies.

"At the operational level, the roles of the business units should be to ensure that key risks are appropriately identified, assessed and mitigated.


"Hence, there should be genuine awareness, ownership and accountability of risks throughout the company," Zamani said in his keynote address presented at the Malaysian Insurance Institute (MII) International Risks and Risk Management Conference 2010 here.

The Deputy Governor also said the financial world was now a web of risks with complex inter-linkages between financial markets and sectors, as such, the need for risk management was tremendous.

"There is, at present, obvious optimism among financial institutions following the improved economic outlook and market sentiment.

"It is crucial to ensure, however, that this does not result in unchecked increases in risk appetite or compromises the quality of risk management practices," he elaborated.

We need to be vigilant and ensure all potential risks are addressed and comprehensive risk management measures are adopted at both the macro and micro levels of the economy.

Zamani also said corporate governance and risk management practices within the insurance industry must also keep pace with Malaysia's fast-changing financial sector.

Meanwhile, the Chief Executive Officer of MII, Khadijah Abdullah said all parties in various sectors have to work together in adopting and implementing the risk management culture more seriously in Malaysia.

"The culture has improved to a satisfactory level. We do see risk management departments emerging in companies but more needs to be done to totally uphold and implement the culture, going forward," she added.

Khadijah also said the role of risk management had become more pronounced especially during a recession.

"Therefore the need for more risk management professionals have become more profound, worldwide," he added.

-- BERNAMA

Published: Tuesday June 1, 2010

Pengurusan Risiko Perlu Menjadi Satu Enterpris, Kata Timbalan Gabenor BNM
KUALA LUMPUR, 1 Jun (Bernama) -- Pengurusan risiko perlu menjadi satu enterpris yang melibatkan kesemua tahap fungsi perniagaan dan tidak seharusnya hanya terhad kepada pengurusan peringkat tinggi sahaja, kata Timbalan Gabenor, Bank Negara Malaysia (BNM) Datuk Zamani Abdul Ghani pada Selasa.

"Adalah penting untuk mengenali bahawa pengurusan risiko tidak sepatutnya hanya menjadi perbincangan "kotak hitam."

"Pengurusan peringkat tinggi bertanggung jawab bagi penyediaan kerangka kawal atur risiko yang jelas dan menetapkan strategi risiko yang tertentu," katanya di Persidangan Risiko Antarabangsa dan Pengurusan Risiko Institut Insurans Malaysia 2010 di sini pada Selasa.

Pada peringkat operasi, katanya peranan unit perniagaan adalah untuk memastikan risiko utama dikenal pasti, dinilai dan dikurangkan.

"Dengan itu, perlu wujud kesedaran sebenar, kepertanggungjawaban risiko oleh keseluruhan pekerja syarikat," kata Zamani.

Zamani berkata dunia kewangan kini berselirat dengan risiko yang mempunyai jalinan kompleks antara pasaran dan sektor kewangan, yang sekaligus memerlukan pengurusan risiko yang besar.

"Kini, kalangan institusi kewangan jelas optimis berikutan tinjauan ekonomi dan sentimen pasaran yang bertambah baik.

"Adalah penting untuk memastikan bahawa ini tidak menyebabkan peningkatan risiko yang tidak dipantau atau tolak ansur amalan kualiti pengurusan risiko," katanya.

"Kita perlu berhati-hati dan memastikan kesemua potensi risiko ditangani dan langkah pengurusan risiko yang komprehensif diguna pakai pada tahap makro dan mikro ekonomi.

Zamani juga menyatakan bahawa kawal atur korporat dan amalan pwengurusan risiko di dalam industri insurans perlu bergerak seiringan dengan sektor kewangan Malaysia yang pantas berubah.

Sementara itu, Ketua Pegawai Eksekutif MII Khadijah Abdullah berkata semua pihak di dalam pelbagai sektor perlu bekerjasama mengguna pakai dan melaksanakan budaya pengurusan risiko secara lebih serius di Malaysia.

"Budaya itu telah meningkat baik ke paras memuaskan. Kita telah melihat benyak jabatan pengurusan risiko diwujudkan di dalam syarikat tetapi lebih bnayk lagi perlu dilakukan untuk meneguhkan budaya itu," katanya.

-- BERNAMA