The Risk Management Association of Nigeria has urged risk management practitioners to adopt digital means to instantly assess their liquidity and other emerging risks within their banks to protect their banks assets.
It said this on Monday in a statement titled ‘RIMAN harps on digitalisation in managing liquidity risks in banks’.
The statement said this was a consensus by speakers at a webinar organised by RIMAN and a renowned international financial services and risk management consulting firm, Aptivaa recently.
In his keynote address, the Executive Director/Chief Risk Officer, Ecobank Nigeria, Mr Biyi Olagbami, who made this call urged all RIMAN members in attendance on the need to adopt a quicker response by embracing digital means to risk analysis in banks assets and liquidity.Olagbami stated, “It is our duty and responsibility as risk managers and risk practitioners that we put the financial institution and the financial system in a position where we can manage all of these issues and challenges in a manner that guarantees consistency and resilience in our operations and in our profitability both in the current position and the future.
“The issue around limits, we have to have our systems in place to immediately flag breeches in limits; Having to know that at the end of the month can be a dangerous thing because every day is critical now.
“And that is why there is need to move from analog to digital so that everyone can at the same time know when limits are being breeched and where evasive actions need to be taken.”
He noted that the need to move from analog practices to digital was important.
He added, “We have moved from statutory risks management to what we call dynamic risks management. We have moved from analog, review, past review-based risks management to more digital online and forward-looking risk management.
“What that means is that more than ever before, scenario analysis must be at the center of what we do.”
The Director, Aptivaa, Mr Satya Vemireddy, said, The COVID-19 crisis has definitely brought a paradigm shift in terms of our work culture and how companies operate and in terms of how the global economies are operating.
“From a risk management perspective, there has been a significant impact. Pre-COVID-19, risk management had largely played a more reactive and static approach where most of the risks management was driven by regulatory requirement from a liquidity perspective.“Certain advanced jurisdictions have taken more dynamic analysis with more stress testing-based […]