Bangladesh Bank governor Dr. Atiur Rahman Saturday recommended establishment of a separate "risk management unit" in every bank and financial institution to address and mitigate the potential business risks.
"This risk management arm, which should be headed by a top risk management specialist, will be responsible for analysing and weathering any potential business risk in financing," he told a gathering of the country's top bankers in the city.
The central bank governor was speaking at a roundtable discussion on the "Global Financial Crisis and Corporate Governance: Lessons and Way Forward for the Banking Sector in Bangladesh". Bangladesh Enterprise Institute (BEI) organised the programme.
"This specialised wing, which will act as a separate unit within every bank's organogram, will provide the banks cushion against any financial crisis at micro and macro level while insulating the institutions as well as the overall economy from extensive damage," Dr. Atiur said.
Earlier, Bangladesh Bank has formulated core risk management guidelines that address the five major areas of risks, including credit risk, foreign exchange risk, asset-liability risk, internal control and compliance and money laundering. |
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