Although the entire financial sector across the globe is working on the implementation of the 2004 Basel Accord in some form and intensity, much yet remains to be done. Effective risk management is the hallmark of successful financial institutions and the issue has acquired an added importance in the light of the Basel II norms to be introduced in 2007. The event was a huge success and witnessed participation not only from students but also delegates from institutions like IDBI Bank, UTI Bank, ICICI Bank, Canara Bank, Bank of Baroda, TATA Steel and other eminent and accredited Chartered Accontants from in and around Jamshedpur.
The first session on “Risk Management and Basel II: Move from Capital Adequacy to Capital Efficiency” was taken by the honourable Chief Guest Mr. Mittal himself Mr. Mittal is currently heading the Risk Management division of PNB and has been instrumental in establishing the widely appreciated risk management models of the bank. The session covered various concepts related to Risk Management such as the Capital and its role in Financial Institutions, types of capital, Basel Committee of Banking Supervision and Basel Accord, Regulatory Capital and Capital Adequacy, Economic Capital and Capital Efficiency.
Session II on “Credit Risk: Management of credit risk and probability of default” was taken by Mr. Mohan Bhatia, Senior Principal Consultant, i-flex solutions ltd. Mr. Bhatia is presently working on Economic Capital Computation, Integration of Market and Credit risk, Risk Aggregation of Operational Risk and Integrated Compliance Framework and specialises in Hedge Accounting among others. The lecture essentially covered Credit Risk Components and Factors, Probability of Default and a rich insight into the working of Probability of Default Models.
Session III on “Operational Risk: Effective Management and implementing an AMA Approach” was taken by Mr. Kalyan Debnath, Executive Vice President, Peerless Investment Group with more than 20 years of industry experience in firms like E&Y; and various Indian and multinational banks. The various components of operational risk for a bank such as People Risk, Process Risk, Systems Risk, Legal and Regulatory Risk and Event Risk were elaborated upon.
The concluding session was conducted by Mr. B. Sekkizhar, FCA, Independent Consultant (on Strategic HR and M&A;) to Kenexa Technologies on “Market Risk: Issues in defining and measuring economic capital”. Market Risk is infact the major focus of Asset Liability Management (ALM) in the Banking System and aspects of market risk such as interest rate risk and foreign exchange risk were covered.