UAE banks throw spotlight on risk managers

One of the most important thing that should be take in consideration is RISK MANAGEMENT.By using a good techniques to avoid risk or reduce it.by using Risk Management the company can increase it shareholders.Don't forget that the good management reduce the cost of buying insurance contracts and the good opportunity cost for investing the money which has been considered for purchasing the insurance contract.Finally i think the company should have a department for RISK MANAGEMENT AND INSURANCE to maximize its shareholders and profit.

The GCC banks are not having proper risk managment structure at present and have landed themselves in a big trouble after riding a high growth during last decade. The risk management structure so far was quite sketchy and inadequate. There is need to strengthen the risk management set up in every bank/branch level and every decision should be taken after careful risk analysis. A knee jerk reaction is also dangerous like some banks have completely stopped credit expansion. Simplly by stopping problem can not be solved. You can march ahead with adequate risk prevention measures.

The last decade saw a benign credit environment in the UAE. Commercial banking relationship managers who started their careers during this era had never seen an economic cycle and are ill equipped to deal with the present market turmoil. This underscores the need for high caliber risk managers and risk infrastructure in local and regional banks.

We have to understand that the way we are managing risk needs to be revisited. With all fancy models and high paid risk professionals, the reputed and large banks are collapsing. Some professionals might brush it aside by citing the current problem as systemic one but it also throws light on the capabilities of our existing risk models and modus operandi. UAE shouldn't follow western model as it is. we need to focus more on control measures and also on Pillar II elements.Too much of focus on Capital calculation takes away the real issues. I hope the industry needs more risk managers of the type, who have the right communication abilities and are capable of bringing change in the existing set up in a smooth manner.

As banking industry grows up to find proper solutions to sophistigated and big deals, risk management , Monitoring,Audit , Fraud examining , Control specialists are all playing essential roles in mantaining the organizations they work in more safe.Experience learned us too much about risks sarrouding the organizations as control invirnment is ineffective .Risk managers should have high experience as well as high level of acknolege about the products ,market ,clients and also should be open up and down .