Bank Mandiri claims ERM solution implementation facilitated greater capital efficiency
The bank's integrated risk management system enabled it to compute capital adequacy more effectively, improve capital planning, define its risk appetite and set risk limits. January 07, 2014 | Foo Boon PingIndonesia’s largest bank, Bank Mandiri, runs a diverse portfolio of business lines, spanning six business segments: Institutional, Corporate, Treasury, Commercial and Business, Consumer Finance, and Micro and Retail Banking. These segments feature in eight of the bank’s subsidiaries: Syariah Mandiri, AXA Mandiri Financial Services, Mandiri Sekuritas, Mandiri Tunas Finance, Bank Sinar Harapan Bali, Mandiri AXA General Insurance, Mandiri International Remittance and Bank Mandiri Europe Ltd. The bank’s management understands the critical need for supporting infrastructure and technology to enhance enterprise value, optimise the bank’s risk-return profile and support its decision-making process. Bank Mandiri aims to take an enterprise-wide approach to managing all types of risk Figure 1. An effective and cost-efficient risk platform that provides Basel II solutions and beyond “Risk management proactively supports the bank in achieving a healthy and sustainable growth while maintaining optimal risk-adjusted return,” said Bank Mandiri’s Chief Risk Officer, Sentot Sentausa. Its risk management principles and practices follow the enterprise risk management (ERM) approach which was built on four building blocks: organisation and human resources, policies and procedures, systems and data, and methodology/ models and analytics. The framework was implemented in an ERM technology system in 2009. The project completed in 2011 and is widely regarded as the first comprehensive ERM project ever implemented in Indonesia. The challenge The global financial crisis in 2008 provided useful lessons for the bank to significantly improve its risk management infrastructure and capabilities. It sought to create a comprehensive approach to identify, measure, prioritise, manage and monito... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Operational Risk & Security, Risk and Regulation, Technology & OperationsOperationalRiskSecurity,Risk and Regulation,technology, Operational Risk & Security,Risk and Regulation,Technology & Operations, Keywords:Bank Mandiri, Oracle, Basel II, Sentot Sentausa, ERM, Sultan Khan, Liquidity Risk Bank Mandiri, Oracle, Basel II, Sentot Sentausa, ERM, Sultan Khan, Liquidity Risk
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