January 19, 2012

The Confederation of SAARC Apex Bodies in Sri Lanka in partnership with the Asian Bankers Association, Bartleet Transcapital and Aptivaa launched the first Risk Professionals’ Forum in Sri Lanka, held at HNB Auditorium on 19th January 2012. The full day event was held to discuss issues related to risk management with focus on Integrated Risk Management Guidelines, recently released by the Central bank of Sri Lanka.

Central Bank Governor Mr. Nivard Cabraal was the Chief Guest. Mr.Cabraal spoke on the issue of integrated risk management framework for banks whilst the ABA Chairman and HNB CEO Mr. Rajendra Theagarajah gave a global perspective on risk management. “Getting capital is tough but generating returns on it is tougher,” said Alok Tiwari, CEO of Apitvaa, who spoke on the issue of Basel II and integrated risk management implementation in Sri Lanka. Mr. Tiwari presented his perspectives on the CBSL guidelines and highlighted the focus areas. His presentation was followed by a panel discussion on the integrated risk management implementation within Sri Lanka. The panelists were HNB CRO Mr. Dilshan Rodrigo, Bank of Ceylon CRO Mr. Trevinne Fernandopulle and Commercial Bank CRO Mr. Sanath Manatunge and was moderated by Mr. Tiwari. The panelists shared their views on the CBSL guidelines, discussed the progress made by their banks and also gave valuable suggestions to help local banking industry comply with the guidelines.

The forum was graced by many other distinguished guest speakers and experts in risk management., Ahli United Bank’s Group Head of Business Information Systems Mr. Johann Mendis made a presentation on IT systems and Enterprise risk data management; Global perspective whilst Mr. Alok Tiwari focused on Operational Risk Management Framework and discussed various issues in its implementation. He also presented various cases studies from his experiences of ORM roll-out in large banks across various countries.

Bartleet TransCapital Director Mr. Nihal Welikala impressed on the forum how managing risk and Basle 2 compliance was a journey and not a destination. Aptivaa’s Mr. Samuel Bhutia gave a presentation on “Credit Risk Modeling: Development and Valuation of Rating Models”. He presented the rating model development life cycle in lucid terms, helping the gathering understand the various nuances. He also highlighted various practical issues faced in similar projects with banks in the Middle-East, UK and the US.

Aptivaa’s Mr. Vibhor Mittal’s presentation focused on the Internal Capital Adequacy Assessment Process (ICAAP). He elaborated the best practices in an ICAAP framework and further elaborated it with the help of case study. He explained in detail how a bank’s ICAAP could address issues of capital planning, assessment of all types of material risks, testing the capital requirement under different stress scenarios, capital required for covering all material risks due to current as well as prospective business profile and internal organization and processes to manage the above on an on-going basis.

Confederation of SAARC Apex Bodies in Sri Lanka Vice President Mr. Nawaz Rajabdeen also graced the occasion along with the Secretary General Mr. Upali Ratnayake. The event witnessed huge participation from various banks and other financial institutions.