June 05, 2011

Thomson Reuters, on the 3rd and 4th of June, organized a unique ‘Value from Risk Forum’ in Mumbai to principally address potential challenges faced by the Indian economy to maintain an effective balance between growth and inflation. The forum featured discussions on IMA compliance in India and the various challenges faced by Indian banks in implementing the approach.

Day one comprised of discussions on managing the growth/inflation balance in India and identifying and defining the “Indian Risk Frontier” in the light of recent regulations, featuring esteemed speakers such as Mr. Craig Bennett (Regional Director, Asia), Mr. Krishan Grover (Head of Trade and Risk Management, South Asia) and Mr. Philippe Carrel (Executive Vice President, Thomas Reuters).

Day two featured a discussion on IMA Compliance in India conducted by our CEO, Mr. Alok Tiwari. Furthermore, he led a panel discussion on the challenges faced while implementing IMA in Indian banks. One of the challenges comprises of the need to update the current market risk governance structure and control framework. Discussions were carried out on the importance of documentation required while applying for IMA approval, especially the MR File and the MRM Dossier.

The MR File describes the internal model, risk management control system and substantiates the compliance with the quantitative and qualitative requirements of the RBI guidelines, and the purpose of the MRM Dossier is to keep a record of the details of the model and the changes/refinements (if any) made from time to time. Apart from these, discussions were carried out on market risk technology and model development and validation techniques for IMA, and the methods for effectively tackling these challenges.

The panel consisted of esteemed personalities such as Mr. Pravat Dash (Head of Risk Management, Axis Bank), Mr. Sanmoy Chakrabarti (Head of Market Risk, HDFC) and Mr. Philippe Carrel.