Bringing Thought Leadership to Financial Services
Mumbai Cricket Association, Mumbai, 6th Aug’15: The Imarticus Risk Management Round table, among the first of it’s kind in India, was held at the Mumbai Cricket Association today and was attended by leading figures in Risk Management. Over 75 attendees and fifteen panelists discussed trends in Market, Credit and Operational risk as well the need to create a risk management culture in the current environment. The panelists comprised senior professionals across the spectrum of financial services.
Risk Management has come a long way from the trading floor and the Basel Accords of 1980’s and 1990’s. Global securities markets have expanded and both exchange traded and over-the-counter derivatives have become major components of the markets. These developments, along with technological breakthroughs in data processing, have gone hand in hand with changes in management practices and lead to a movement away from management based on accrual accounting toward risk management based on marking-to-market of positions. In light of current events, Risk Management is now, more than ever, at the forefront of organizational learning yet it is still hard to grasp from a perspective of execution and day-to-day management.
“Managing risk for a business is inherent to its success. It’s not only about risk models and systems but also about a culture that fosters informed decision making which will ensure long term viability”
-Nikhil Barshikar, Founder & Managing Director, Imarticus Learning.
Imarticus Risk Roundtable 2015 highlights:
Opening keynote by Nikhil Barshikar, Founder and Managing Director, introduced Imarticus Learning and addressed the need for a dialogue for Risk in the current climate.
Credit Risk Panelists
Arun Kumar Iyer, Director, Risk Solutions, CRISIL
Ashish Agarwal, Chief Risk Office, Yes Bank
Loknath Mishra, General Manager ICICI Bank
Somak Ghosh, Managing Partner, Contrarian Fund & Founding Member Team, Yes Bank
Shalinee Mimani, Chief Risk Officer, Edelweiss
Key Takeaways: The panel, moderated by Mr Arun Kumar Iyer, discussed emerging trends in Mitigating Credit Risk and how has the Regulatory environment influenced the way firms Manage Credit Risk and the need for the industry to take a concerted effort, driven by regulator and credit risk experts to have a credit risk consortium, similar to ops risk data consortiums.
Operational Risk Panelists
Murali Subrahmanyam, MD & Head-India Operations, MSCI
Pratik Shah (Moderator), Partner, E&Y
Rajesh Jogi, Chief Risk Officer, RBS
Sachin Singh, MD – Risk, BNY Mellon India
Thakur Bibhuti Verma, Director, Deutsche Bank
Key Takeaways: The panel, moderated by Mr Pratik Shah, focused on emerging risks and themes within operational risk and whether it is really given the right priority. There was also some discussion on the importance of Risk Culture as well as how to calculate Return on investing in Risk management.
Market Risk Panelists
Jayna Ghandhi, Head of Treasury, NSE
Navneet Munot, Chief Investment Officer, SBI Fund Management
Satrajit Bhattacharya, Joint General Manager, Treasury, HDFC Ltd
Vaidhyanathan Krishnaswamy, Faculty, ISB & University Connecticut
Vikram Bhorawat, Director and head, Market Risk Management, Deutsche Bank
Key Takeaways– The Panel, moderated by Mr Vaidhyanathan Krishnaswamy, discussed the impact of globalization on Market Risk as well as the use and limitations of Analytics and Modelling. It also spent some time on Algo trading in India.
Somak Ghosh, Contrarian Fund
Quotation: “Hire the best talent, take the triple AAA guy and put him in Risk. Risk today is no longer a backend job; 25 years ago you could be a loner crunching numbers, today we need an all rounder”
Mr. Arun Kumar, CRISIL
Quotation: “The current credit environment and emergence of new platforms of lending have necessitated a change in focus of credit risk from just measurement, compliance and control to proactive mitigation of credit risk challenges. Regulations are increasingly focusing on identifying early warning signs and moving towards more proactive credit risk management, which in turn shall lead to more dynamic credit assessment frameworks”
Ms. Shalinee Mimani, Edelweiss Financial Services Ltd
Quotation: “The credit risk mitigation practices in India have evolved to a great extent post the 2007 Global crisis. The credit risk strategies are being incorporated in the Credit Management policies of the financial institutions. They spell out the target markets, risk acceptance/avoidance levels, risk tolerance limits, preferred levels of diversification and concentration, credit risk measurement, monitoring and controlling mechanisms. Lenders are mitigating risks by using several methods such as risk based pricing, credit insurance, diversification, use of scoring models and bureau in underwriting and portfolio management etc.”
Name – Deepesh Panchal, S&P Capital IQ
Quotation: “The Imarticus Financial Services Roundtable conference on Risk Management was well organized with good topics, speakers and excellent networking. The panel consisted of best of the Risk professionals in the business who touched upon a wide variety of discussion points in the areas like Credit Risk, Market Risk and Operational Risk. They provided a very in depth industry perspective on how each of these risk segments are important to the organization and shared some interesting experiences. The networking session post the panel discussion added more flavor to the evening through interactions with risk professionals from the industry. It was good to see the Imarticus team take the lead in organizing an event dedicated to key areas of Risk Management like Credit, Market and Operational Risk. I look forward to participating in many more such roundtable discussions in the coming months.”
About Imarticus Learning
Imarticus Learning was formed to bridge the gap between academia and industry by providing knowledge and skill sets, which are essential in today’s competitive environment. The firm began as an employability gap builder, an enabler that would make academics work in the real world. Imarticus wants to transform fresh graduates into value adding professionals by teaching them what to do in a role- skills and expertise specific to the role and industry. Our programs focus on ‘doing’, ‘learning from experience’ and building expertise. In the last two and a half years we have launched over 15+ programs and educated and placed over 5000 students in roles across the Investment Banking and Capital Markets. Our next step is replicating this model online to reach out to students beyond the metros and give them similar access to skills and knowledge and simultaneously increasing the pool for employers. To ensure our knowledge, curriculum and domain expertise is current we constantly engage with Industry and have thus started to evolve into a knowledge partner with thought leadership in this space. This was one of the drivers behind organizing this conference.
Imarticus plans to revolutionize Risk Management education and we are proud to announce the launch of CIGR (Certification in Global Risk), our 50 hour Online Certificate program in Risk Management. The two levels comprise various facets of Capital Allocation from the perspective of all stakeholders and an in depth study of the three major types of Risk-Market, Credit and Operational. Our coverage includes identification, quantification & reporting of risk parameters.