RIMAN tasks banks on emerging financial systems’ risks
As new technology and processes evolve, the Risk Management Association of Nigeria (RIMAN) has charged financial service providers, especially banks, to embrace best risk management practices in their operations.
According to the association, the appeal was premised on the emerging risks confronting the nation’s financial system, especially as new technologies evolve.
RIMAN also commended the management of Wema Bank for upholding best risk management practices in its operations.
The commendation was made during a courtesy call by the RIMAN Executive Council led by its President, Dr. Ezekiel Oseni, on the Chief Executive Officer of Wema Bank, Mr. Ademola Adebise, last week.
Speaking at the event, Oseni appreciated the Managing Director of Wema Bank, and the Management team for upholding best risk management practices in the bank, noting that it is not only that the bank’s risk management department is well staffed but with highly qualified personnel that are also exposed regularly to capacity building programmes organised by the Association.
Oseni also congratulated the MD of Wema bank and the Board of Directors for the impressive financial performance of the Bank for the first nine months of this year.
“Your EPS for the first nine-month period of 2021 increased from 9.20k that was recorded for the same period in 2020 to 21.60k, representing 135 per cent growth. I am happy to also observe that since 2018 the bank has been consistent in the payment of dividends. The improved and commendable performance of the bank is not unconnected with the quality of your risk management practice across board and the quality of your risk managers.” he said.
However, he appealed to the bank to sustain its support for best risk management practices in the Bank and if possible, take it to a higher level.
According to him there may never be a lasting solution to cybercrimes as long as new technologies and processes emerge.
“The long-awaited Internet of Things has the potential to breach private data privacy, give unauthorised access to private data and so many other challenges. Internal risk management functions should start addressing these risks ahead of time by looking for customised solutions.
“Also, new, stiffer and unavoidable regulations to curtail increasing cyber crimes may be in conflict with some strategic focus of some banks to grow their businesses. It will throw up compliance risks for the risk management function. The banks need to weigh their options and ensure that compliance risks do not materialize.
“RIMAN recently provided public enlightenment and heads up on the recently released Basel III regulations by the Central Bank of Nigeria (CBN) via a well-attended Webinar. Due to popular demand, a rerun of the Webinar is proposed for the first week in December 2021 and this time we would partner with Moody’s Analytics, UK”, he said.
Managing Director of Wema Bank, Mr. Ademola Adebise, thanked the president of RIMAN, the EXCO and the entire members for the continuous support to stakeholders in risk management practice and for professionalizing risk management via the Certified Risk Manager (CRM) professional certification.
He urged RIMAN to sustain the tempo in providing capacity building in risk management. Remarkably, he charged RIMAN to speak more around BOFIA and Regulatory risks to bring together operators and regulators in the industry.