The Asian Banker One Big Question - Vote Today!
The Asian Banker One Big Question is a debate held as part of our effort to solve practical problems that bankers across the region are facing. Bankers will be encouraged to share key business issues and a community driven debate is organised to find a solution. Industry/subject matter experts are invited to provide their views on the topic before we open up to the floor for our audience to vote, sharing their view. At the close of the campaign, we will organise a teleconsultation session to discuss our findings and conclude the campaign.
Can Asian Banks Lead the Way in Integration of Risk and Finance?
In the past, the case of financial reporting and risk reporting have traditionally been undertaken by different teams within financial institutions, many of whom end up using different systems and data to create separate reports. This limited interaction between the two have resulted in failures of large institutions across the globe over the past years, stemming primarily from lack of communication between risk managers, senior management and the boardroom.
Ensuing legislation has led many to aligning risk and finance functions now, but it has become apparent that in many cases a siloed culture still prevails, even in areas where responsibility is supposed to be shared. It is strongly believed that financial institutions that align risk closest will benefit tremendously from the development of risk and return oriented views of the business, resulting in greater transparency and control over processes. It will also help to simplify financial and risk reporting and compliance. As David Craig, CFO at Commonwealth Bank of Australia, puts it, “risk and finance are inextricably linked.”
The Asian Banker would like to hear your views on this topic, whether you agree or disagree with the motion. Vote and contribute your thoughts to be part of this debate. Read opinion articles from our highly distinguished guests published by us.
All Comments (2)
You need to come up with shared/common definitions for data across functional departments. Without this, regulatory reporting is going to be a problem.
19th November 2012 04:43 PM
I don’t see it happening at this moment, not for Malaysian banks. It’s still very much siloed. The reporting standard for finance overrides risk, and guidelines for risk are very different from finance. There are no model reserves for instance in finance. But some banks are more creative, I’d say that Singaporean banks are more ahead in this regards.
14th November 2012 05:53 PM