Making sense of risk management
Chng Sok Hui, CFO of Singapore's DBS, discusses the challenges and importance of bringing multiple functions together as part of an integrated risk management framework. February 14, 2013 | Foo Boon PingWhen Chng Sok Hui was appointed the chief financial officer (CFO) of Singapore-based DBS in 2008, her career in the bank had spanned some 25 years, starting in 1983. She had at various times been involved in corporate planning, market risk management and credit risk management. She held the position of group head of risk management before such a function became commonplace in the banking industry. Her career broadly parallels the journey that DBS took in building its integrated risk management function. DBS is one of the first banks in Asia to embrace risk management. Chng recounted the journey which started in 1995, when then chairman Ngiam Tong Dow threw down the gauntlet for the bank to ramp up its risk management capability. That started a period of research and fact-finding that included the appointment of Oliver Wyman, a leading risk management consultancy, in an advisory capacity in the bank’s quest to create a risk management model which Chng said has to “make sense” for the bank. The bank conducted study tours of leading global banks to find out what they were doing in risk management. Chng found that global banks were making significant investment in developing tools for risk rating. In the credit risk area, they were developing the expected loss methodology. In market risks, banks were just beginning to look at Value at Risk (VaR) and the concept of operational risk had not really been established. As head of corporate planning, a function which supported the executive office of the chairman and CEO, she was given the task of implementing a new risk management framework that would not only measure up to global standards, but which was appropriate for the bank at each stage of development. When the project was completed, she relinquished her corporate planning role to become the bank’s first market risk manager. Chng explained that when the consultants had done their job, they had developed an outline of the r... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Data & Analytics, Data Management, Operational Risk, Risk & Performance, Risk and Regulation, SingaporeData & Analytics,Data Management,Oprisk,Risk & Performance,Risk and Regulation,Singapore, Data & Analytics,Data Management,Operational Risk,Risk & Performance,Risk and Regulation,Singapore, Keywords:DBS, Chng Sok Hui, Ngiam Tong Dow, VaR, CFO, CRO, ICAAP DBS, Chng Sok Hui, Ngiam Tong Dow, VaR, CFO, CRO, ICAAP
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