Risk Management

BIS issued “Basel III: A Global Regulatory Framework for more Resilient Banks and Banking System” in 2010, in order to strengthen global capital and liquidity rules with the goal of promoting more resilient banks. The reform was a response to financial crisis 2008 and to improve the banking sectors ability to absorb the loss on a going concern basis. 

Accordingly, NRB issued directives to Commercial Banks to maintain their capital adequacy ratio as per New Capital Adequacy Framework designed based on Basel III requirement.

For financial institutions, better handling of different types of documents is essential. Technique to communicate with customer legally with good faith is always required in any institutions. Likewise signature verification is basic need for bankers whereas losses due to forged signature are in increasing order. Similarly, trade of counterfeit currency is big threat for our economy. Forensic laboratory is continually receiving such forged documents, cheques as well as currencies. The awareness towards it is essential for bankers.

For financial institutions, better handling of different types of documents is essential. Technique to communicate with customer legally with good faith is always required in any institutions. Likewise signature verification is basic need for bankers whereas losses due to forged signature are in increasing order. Similarly, trade of counterfeit currency is big threat for our economy. Forensic laboratory is continually receiving such forged documents, cheques as well as currencies. The awareness towards it is essential for bankers.

Forgery in documents which are used for any banking transactions may lead to greater economic loss. Hence personnel involved in such activities need to know the ways of forgery in documents like check, ID and different aspects of signature, fingerprint etc. Recent events show the vulnerabilities of bank employee in detecting such forgeries, especially detecting forged signature, ID and checks. Hence getting such knowledge regarding such aspects makes banking employee and bank more secure.

The program will help in understanding: 

As Nepalese Banks are gradually moving towards implementation of International best practices in Risk Management, it would be enormously beneficial for all concerned to discuss and deliberate on the various aspects of the risk management processes. In order to facilitate such discussions among various stakeholders, NBI announces a one day conference on Risk Management.

 

Forgery in documents which are used for any banking transactions may lead to greater economic loss. Hence personnel involved in such activities need to know the ways of forgery in documents like check, ID and different aspects of signature, fingerprint etc. Recent events show the vulnerabilities of bank employee in detecting such forgeries, especially detecting forged signature, ID and checks. Hence getting such knowledge regarding such aspects makes banking employee and bank more secure.

It is imperative for the banks to have a robust risk framework to manage all the risk associated with it and the management of credit risk begins at the origination itself. Managing the credit risk exposure within the framework of risk management (identification, measurement, monitoring and control) is of utmost importance for minimizing the losses arising out of the risks associated with credit. 

 

Considering this, the course has been designed to provide the participants an understanding of Credit Risk Management at the Branch level. 

 

Operational Risk has been increasing day by day in the Nepalese Financial Sector and large risks events are taking place one after another, and it is always difficult to assess when, how and at what intensity the operational risk events occur. But the losses stemming from operational risks may erode the capital of a BFI with such a magnitude and intensity that the BFI may be left with no room for escaping from the impact, which could precipitate up to a situation of collapse.

With a view of integrating sustainability into credit risk management in the financial sector, Nepal Rastra Bank released the Guidelines on Environmental & Social Risk Management (ESRM) for Banks and Financial Institutions in 2018. The objective is to establish the ESRM Framework as the standard process for proactive evaluation and integration of environmental and social issues into the credit risk assessment process of B/FIs.