Nigeria banks needs new risk management talent- Aig-Imoukhuede

Kindly Share This Story:

 

Key Takeaways:

….Though regulators have evolved significantly and matured in the last decade

….are we prepared for the disruption that is coming

….corporate governance and risk management that exists in the Nigerian banking sector today as fit for purpose for our future banking sector

….We has to ease monetary policy and proactively manage the uncertainty around foreign exchange risk

…..We must be proactive not reactive

…..Banking has not changed but the volume of customers and transactions has gone up hugely

….What is our response to systemic risk of an electronic/digital dimension?

…..we need to bring in new risk management talent in the banks

 

Speaking on the topic “Emerging Corporate Governance and Risk Management Issues In Banking” Mr Aigboje Aig-Imoukhuede delivered during NDIC 30th Anniversary Lecture on October 21, 2019 at Abuja.

L-R: Rep. of the Rt. Hon Speaker, House of Representatives Hon. Victor Nwokolo; Guest Lecturer, Aigboje Aig-Imoukhuede; Minister of State for Niger Delta Affairs, Festus Keyamo, SAN; NDIC Board Chairman, Ronke Sokefun; Minister of Water Resources, Engr. Suleiman H. Adamu; Vice President, Prof. Yemi Osibanjo, and NDIC MD/CE Umaru Ibrahim, mni, FCIB, at the Nigeria Deposit Insurance Corporation (NDIC) 30th Anniversary Lecture and Presentation of the Book: 30 Years of Deposit Insurance System in Nigeria yesterday in Abuja

Aig-Imoukhuede said that our banking system is a huge highly flammable asset which is unfortunately in close proximity to several challenges capable of igniting a fire and we must take proactive steps to insulate this asset from the risks around us.

 

He pointed out that “Future proofing regulation, are we prepared for the disruption that is coming?

 

“While I have been clear that I believe the progress we have made over the last decade has been significant, I also know that we continue to face new risks every day and it is the risks of the future that I spend most of my time thinking about. I am confident that the industry and its regulators have evolved significantly and matured in the last decade, but if you ask me whether I consider the corporate governance and risk management that exists in the Nigerian banking sector today as fit for purpose for our future banking sector, then my answer is a loud NO.

“Why is this? It’s because if the predominant model for financial services shifts to a digital model then the world we are entering is going to be very different from the one we are in today. What does this mean for banking regulations, from a corporate governance or risk management perspective?

“If the predominant model for financial services shifts to a digital model then the world we are entering is going to be very different from the one we are in today, by Mr Aigboje Aig-Imoukhuede.”

 

“I have not yet met a digital banker who sees the banking world through a lens similar to an analogue banker and as a result, they also view the regulatory environment very differently as well

 

“We need to bring in new risk management talent in the banks as an urgent imperative to suit the evolving nature of banking, the stakes have gone up and we must respond appropriately.”

 

“I do not believe we that some of our policies are helping. We HAVE to ease monetary policy and proactively manage the uncertainty around foreign exchange risk. We cannot bury our heads in the sand. We must stress test and ensure effective contingency planning. We must be proactive not reactive, he added.

 

“Banking has not changed, but the scale has increased astronomically. At the same time bank operations have gone retail and some banks have over 20 million customers, which creates new avenues for operational risks. The volume of customers and transactions has gone up hugely.

 

Aig-Imoukhuede query that what happens if there is bank operational failure?  A run on a bank can no longer be controlled using traditional means if people can move money electronically or with USSD. What is our response to systemic risk of an electronic/digital dimension? The regulatory capacity to oversee our sector was built to address the risks of the sector as we saw them in 2008.

He pointed out that we have to evolve that capacity to meet the needs of 2020.

 

Therefore, he reiterated that we need to bring in new risk management talent in the banks as an urgent imperative to suit the evolving nature of banking, the stakes have gone up and we must respond appropriately.


Kindly Share This Story:

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *

amehnews greetings

x