Enterprise Risk Management Seminar Hosted by Doha Bank
Doha Bank continued its efforts of conducting various knowledge sharing sessions by hosting a session titled Enterprise Risk Integration for the benefit of its customers on 14th September 2011 at Doha Bank Tower, Doha-Qatar. This knowledge sharing session was attended by Diplomats, Charge de affairs representing respective foreign embassies operating in the State of Qatar, customers of Doha Bank, renowned bankers, industrialists, analysts, economists and regulators from the State of Qatar.
Speaking on the Occasion Mr. R. Seetharaman, Chief Executive Officer, Doha Bank Group addressed the gathering as the keynote speaker setting the tone for the evening. He gave his outlook on Global economy and GCC Economy and highlighted major risks that are faced by the Global Economy. He stated “Slowdown in Global economic Growth, Risk of double – dip recession, Risk of downgrade of developed economies, imbalances in Markets, High Commodity Prices and Inflation in Emerging economies, continued pressure in Euro zone after Portugal, Italy and Greece development and the increase in unemployment in advanced economies and Risk of currency war are some of the major risks faced by the Global Economy”
Mr. Seetharaman explained in detail the need and relevance of Enterprise Risk Management in firms. He stated that “A critical aspect of management responsibility is to understand and determine which risks should be taken on, and what magnitude of business consequences (in case of a failure) can be managed away. Different risk categories and their impact on business levels should be included in strategy setting. The importance of building enterprise risk awareness and ingraining it deeply into the organisational culture and processes citing it essential to encourage open communication between all employees and inspire interest in ERM best practices.”
Mr. Seetharaman also spoke about the risks involved in various verticals such as Supply Chain and Financial Risks. He said “ There has to be a better understanding of Supply Chain Risks and the key is establish and maintain an effective system without underestimating the risks posed by Supply Chain issues.” Mr. Seetharaman also highlighted the Financial Risks which includes risks involved in raising capital and Market Risks comprising of currency risk, interest rate risk and liquidity risk. These risks warrant immediate attention as it directly impacts financial services industries.”
Mr. Seetharaman also touched upon various aspects of Human Capital Risk, Asset Management Risks, IT risks and Reputation Risks that plague the Global Economy in general and Business Firms in specific. Speaking on Reputation Risks he said “Managing reputation is therefore an essential part of the strategic role of the board of directors, who must take into account all stakeholders, whose perception of the organisation will determine its reputation. Risks or uncertainties, both positive and negative, must be managed in a holistic systemic approach, as there is no such thing as reputation risks – rather, all risks may impact on reputation”
This was followed by a presentation by 3 Industry experts namely Mr. Peter Kohut, Head of Financial Risk Management, KPMG , Mr. Richard Cochinos, Senior G10 FX strategist from Bank of America Merrill and Mr. Paul Roberts, a legal expert from London respectively and a Panel discussion with these Industry experts which was moderated by Mr. R. Seetharaman.
Mr. Peter Kohut, Head of Financial Risk Management, KPMG spoke on Enterprise Risk Past, Present and Future. He stated that “In past Risk was a focused discipline, there were industry specific approaches to risk and quantitative models evolved. Presently Tsunamis continue and complexities increased. Enterprise Risk Management is still relatively immature. External environment issues such as Euro and Japan earthquake need to be considered. The new mindset for Risk Integration is enhancing complexity and uncertainity, seeing risk as opportunity and dealing with multiple versions of the truth”
Mr. Richard Cochinos, Senior G10 FX strategist from Bank of America Merrill Lynch spoke on Global themes and Risk. He highlighted the recession risks and the impact of currencies. There could be a 40% chance of recession in next 12 months. He spoke about Asia being a safe haven and the British pound making a comeback to the limelight. He also spoke on Inflationary and Global Slowdown issues in the developed and Emerging Economies. He also gave his outlook on the bond flows in Emerging Asia. He stated that “US$ will strengthen if global slowdown becomes entrenched.”
Mr. Paul Roberts, a legal expert from London gave his outlook on risk management from Insurance perspective. He gave insight on various Insurance products to address various risks. He also highlighted on significant risks such as Construction risks and Directors and Officers Liability and their importance to modern business.
The Panel Discussion witnessed intense brainstorming on various matters such as Global risks emanating from Europe, Impact on commodities such as Gold and Oil, Bond trends in GCC and Impact of Inflation trends in China and similar consequences on GCC.
In his concluding remarks Mr. R. Seetharaman said that “Enterprise Risk Integration is a key for business transformation.”