Understanding About Bank Business
March 8, 2010
Bank Business is exposed to the four main risk, that are credit risk, market risk, liquidity risk and operational risk.
Credit risk is the inability of customers to fulfill the obligation to pay back. Market risk is the fluctuation in asset values caused by changes in market prices and yields. Liquidity risk is an inability to accommodate the maturing obligations and withdrawals as well as asset growth and financing to meet obligations at a reasonable market price. Operational risk is the potential losses and incidents involving people, processes, technology, legal issues, external events, compliance, or reputation.
To assess risks, in a risks of bank is discussed and assessed at the Board of Commissioners and the Board of Director level using a comprehensive committee structure, which described the Business Risk Management and Governance at the Bank. Read more
Run Effectively Of Risk Management
March 6, 2010
Current financial crisis largely caused by a poorly functioning of risk management. Risk management function should in fact less than perfect in implementation. Therefore, risk management must be improved continuously in order to run more effectively.
Various events in the world has an important contribution to the evolution of risk management, ranging from World War I and II, Great Depression, terrorist attacks, the Asian crisis, Enron and WorldCom scandals, Madoff scandals, until the latest of the global economic crisis that resulted in the fall Lehman Brothers.
People have always tried to learn from experience. The experience provides a valuable lesson so that we do not fall on the same mistake again. Likewise happened to risk management. We tried to minimize the risk with manage it. If it still leaks, then the risk management system repair, and so on. Read more
Applying Fraud Risk Management
December 14, 2009
Fraud is a legal concept that refers to acts done intentionally to gain unfair advantage or illegal. Meanwhile, the misconduct is also a broad concept that generally refers to the violation of the law, regulation, internal policies and business ethics. Both, fraud or misconduct within the category of risk that could destroy the company’s reputation and public trust.
But fraud and misconduct would not occur only on the financial crisis alone, but whenever there is an opportunity for. During the control is still lacking, then the perpetrators of fraud will be able to find a gap to do what he wants. Therefore, companies need to implement strong controls. Fraud Risk Management is the solution. Read more