Madhu Vij, Author at IIRF

Can a Bad Bank Revive the Banking Industry – A Perspective

Madhu Vij — Wed, 19 May 2021 05:49:56 +0000

The present market situation exacerbated by Covid 19 pandemic has slowly but steadily affected economic sectors across the board. India is facing a growing problem of Non- performing assets (NPAs) and the figures have grown substantially in the last few years. The rising NPA is a symptom of an ailing banking sector and it adversely impacts the bank’s profitability, efficiency, net interest margins, capital adequacy ratio, return on assets, returns on capital employed etc. Non- performing assets (NPAs) of banks have come under severe stress and this is a cause of concern. Various experts have pointed out that the existing bad loans is huge problem and without taking tough and stringent measures to recover non-performing assets, all other measures to revive Indian public sector banks would remain cosmetic. According to the Reserve Bank of India (RBI) Governor”Maintaining the health of the banking sector remains a policy priority and preservation of the stability of the financial system is an overarching goal.” The surge in NPAs in the wake of contraction in the economy along with the adverse impact of the pandemic has been behind the proposal to establish a bad bank by the RBI and the Government. The announcement by the Finance minister in the Budget 2021 for establishing a bad bank is significant as it will seek to provide financial stability to the banking sector. The move may also help to relieve banks of their stress temporarily given the present market scenario.

The existing levels of bad loans is a big worry for the Public sector banks (PSBs). With the NPAs set to witness a further spike as a result of the second wave of the pandemic, the idea of setting up a bad bank appears to be the need of the hour. A vicious cycle has emerged in the Indian banking sector as rising stressed assets calls for higher provisioning requirements resulting in capital adequacy concerns. Also, banks do not possess the required expertise to recover the stressed assets. Thus, in order to stay ahead and concentrate on their normal banking functions, setting up a bad bank appears to be a way forward.

What is a bad bank?

The Indian Bankers Association (IBA) had suggested to RBI to set up a bad bank, which could free the banks from the mounting NPAs. The Confederation of Indian Industry (CII) has also suggested to the government the creation of ‘multiple bad banks’ to address the concern of state-owned lenders. Keeping in view the fact that the government dominates the banking system, it is important that the government takes the lead in setting up the Bad bank.

A bad bank is a special bank that buys the bad loans or non-performing assets of other banks and institutions at a discounted price.
The bad bank then works towards the resolution and recovery of these assets over a period of time.
This helps the banks and institutions to have a positive outlook to the new loans and also clean up their balance sheets.
The bad bank is similar to an Asset Reconstruction Company (ARC).

Proposed Model for a Bad Bank?

In the recent Budget 2021, Finance Minister Nirmala Sitharaman said “The high level of provisioning by public sector banks of their stressed assets calls for measures to clean up the bank books. An Asset Reconstruction Company Limited and Asset Management Company would be set up to consolidate and take over the existing stressed debt and then manage and dispose of the assets to Alternate Investment Funds and other potential investors for eventual value realization.”

Budget 2021-22 had announced that RBI will look into the proposal for the creation of a bad bank. The proposed structure envisages setting up of a National Asset Reconstruction Company to acquire stressed assets, which will be resolved by the National Asset Management Company. The setting of a bad bank in the form of an Asset Reconstruction Company (ARC) or an Asset Management Company (AMC) will help the commercial banks resolve the problem of bad loans and in the process help them clean up their balance sheet. An ARC and AMC will take over the existing stressed debt. It will then hold the problem loans until the assets can be sold to Alternate Investment Funds and other potential investors at a reduced price for value realization. The new framework will help clean up the balance sheets of public sector banks and make future requirements of capital less onerous.

The announcement in the budget for the creation of a bad bank is in line with global practices. The first bad bank was created in 1988 in US by US-based Mellon Bank to hold its stressed assets. After this, other countries including Finland, France, Sweden and Germany have also implemented this concept. India is learning from the success experiences globally in establishing a bad bank. The concept has worked in some countries with active participation by the government. However, the difference is that other countries did not have any Asset Reconstruction Company like structure in India functioning for nearly two decades.

The Process

To begin with, professionals with domain knowledge will manage the bad bank. A bad bank will buy the bad loans of other lenders and financial institutions to help them clean their balance sheets. These bad assets will then be resolved by the bad bank over a period of time. This will help the banks to have a positive outlook towards their existing and new businesses.

The structure proposed by the IBA is that the bad bank should buy toxic assets from a good bank at a price below their book value. The bad loans are normally transferred below their book value ( which could be the asset value minus bank provisioning against the stressed assets). The next step will be selling stressed assets to prospective buyers at arm’s length principle, recovering as much is possible and resolving the crisis in the system. However, in the current uncertain situation, this may be a significant challenge.

It is important to ensure that banks do not compromise on their due diligence merely because a bad bank will buy the stressed assets. Also, shifting, or transferring the assets from one entity to another should not be considered as a solution to the problem of non-performing assets.

What would setting up the bad bank do?

The proposal to establish a bad bank will help the banks sell the stressed assets to clean up their balance sheet of the toxic assets. Public sector banks need a high level of provisioning of their stressed assets. This will not only help the banks to clean up the balance sheet but also use their capital more optimally. In other words, banks will be able to:

Focus on their normal banking functions and core activities like lending, borrowing, credit growth etc instead of loan recovery. This could also lead to an enhancement in their valuations.
Improve their credit rating with a cleaner balance sheet.
Be better placed to mobilise capital from the market.
Free the banks from the mounting burden of the NPAs

Thus, a bad bank will help the commercial bank clean up their balance sheet by resolving the problem of bad loans. However, it will not be involved in the normal banking functions of lending and taking deposits.

How will a bad bank operate?

As the idea is suggested by the government, the majority ownership is likely to rest with state-owned banks. This will help to have more participation from Public Sector Banks (PSBs). Two, as the proposed bad bank is being set up as a government initiative, the valuation of the bad loan and the corresponding discount on loans will be a relatively smoother process.
Third, in all likelihood RBI is likely to relax the provisioning norms for banks on assets sold to an ARC and with respect to the requirement of 15 percent capital payment as the proposal is a government initiative.
Finally, a Government-backed institution will have a higher capacity to negotiate deals and help free up banks from carrying the stressed assets on their books.

Will a bad bank solve the problem of NPAs

The problem of NPA is a serious cause of concern for the banking sector. The rising stress that the banking sector is facing, more so after Covid 19, calls for an effective resolution mechanism. However, even before Covid 19, banks were facing a spate of corporate defaults over the last few years. The second wave of Covid has come as a big worry for banks and the NPAs are likely to escalate even further. According to the Financial Stability report released by RBI in 2021, the NPAs of the banking sector are projected to surge to 13.5 percent of advances by September 2021, from 7.5 percent in September 2020. In a severe stress scenario, the ratio may escalate to 14.8%. The impact of the pandemic-induced disruptions on asset quality will be spread over FY21 and FY22, with bad loans expected to rise to 9.6-9.7% by 31st March 2021, and to 9.9-10.2% by 31st March 2022.

In the wake of a slowdown in economic activity and a hike in NPAs, banks may witness the creation of a bad bank that may bepart of a strategy to tackle bad assets. According to the chairman of SBI ‘this is the right time for a structure along the lines of a bad bank as most banks are holding very high levels of provisioning of NPAs. High NPAs impair a bank’s ability to borrow, lend or conduct business as usual.’

To tackle bad assets, the banking sector under the IBA had two years ago proposed an asset management company called ‘Sashakt India Management Company’ to resolve large bad loans. The proposal was prepared by a panel set up by 2018 interim finance minister Piyush Goyal on the faster resolution of stressed assets in public sector banks. It was headed by Punjab National Bank chairman Sunil Mehta to resolve NPAs over Rs 500 crore. A three-tier system involving an asset reconstruction company, an asset management company and an alternate investment fund was proposed. The implementation of the idea is complicated which is why Indian policymakers have only toyed with it. A banking institution has to keep in mind its choices of assets to be transferred into the risky category, business case, portfolio strategy, and the operating model ( Accessed online).

To solve the problem of mounting NPAs, some suggestions could be

Improve Corporate Governance and enhance due diligence to the desired level
Give more powers to banks to recover NPAs
Have an efficient system of credit appraisal of the projects and assessing the credit worthiness of the clients
Stringent NPA recovery rules by the banking sector. Initiate fast track resolution mechanism of the stressed assets

The way forward

The idea of setting up a bad bank has been under discussion for a very long time. It is a great initiative being proposed by the government. The extraordinary stress situation and elevated bad debts arising due to the first and second wave of the Covid-19 pandemic is also leading to a change in perception to provide an out of the box solution. If the structure of the proposed model is optimally designed and supports the eco-system it may help to address the twin balance sheet problem of bad loans and capital adequacy concerns thus opening up a new chapter in the Indian banking landscape.

Three factors on which the success of the business model will depend are First, the ability to attract the right professionals with the relevant expertise who can work with dedication to complete the processes within the defined timelines. Delays in completion of the process not only discourage investors but also increase costs. Second, the type of assets acquired and the price paid by the bank for those assets. If the price is right, the chances of resolution are better. Finally, allowing market-driven platforms and business models to sell bad loans to improve the valuation and price discovery process for non-performing assets.

The terms on which the bad bank will be formed might not rescue Indian banks from their NPAs completely but surely will be critical in shaping the banking system. It can also provide some relief to the Indian banks in this difficult time when the entire economy is under pressure. However, a critical factor for its success will depend on developing and designing a unique and sustainable business model. In addition, greater governance and monitoring of loans for early warning and distress signs will be required to deal with the problem. Thus, a bad bank is a good idea, but may not solve the problem of NPAs for Indian banks given the uncertain and weak economic environment due to the pandemic.

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Blockchain Demystified: A Banking Sector Perspective

Madhu Vij — Mon, 12 Apr 2021 08:24:00 +0000

Introduction

Blockchain has been one of the biggest technology breakthrough in recent times signifying a new way to store and exchange data. It provides a way to transact in a secure and transparent way. As more organizations put their resources behind this emerging technology, blockchain is expected to gain significant traction as its potential for greater efficiency, support for new business models and revenue sources, and enhanced security as demonstrated in real-world situations(Deloitte, 2018 Global Blockchain Survey report).

What is Blockchain?

A blockchain uses a form of algorithm called cryptography to ensure records cannot be changed or corrupted by anyone. Information stored using a blockchain is tamper proof as all the blocks are linked together and no information in any of the earlier blocks can be altered without changing the later blocks. The blocks of data hold data in a secure and encrypted way using cryptographic principles to ensure that transactions can never be altered or changed. Data can be used only by people authorized to do so. The blockchain is an ingenious way of passing information from one party to another in a fully automated and safe manner. In fact, the blockchain technology can be programmed to record virtually all kinds of transactions of value.

The blockchain network stores information across a network of personal computers making them not just decentralized but also distributed. This means no company or individual owns the data systems. Yet the information in it is open for everyone to see. Hence, the information that is built on the blockchain is both transparent and secure.

Application of Blockchain technology in the real world

Companies like Uber and Airbnb which have recently challenged the traditional economy are now being threatened by blockchain technology. The technology has the power to disrupt their business as the blockchain opens the door to direct interaction between the parties, thus eliminating the need for a match making platform.

Ebooks is another area that could be threatened by block chain. Instead of third parties like Amazon and credit card companies earning revenues from the sale, the transaction could be held directly between the author and the reader. The books would circulate in an encoded form and the money could be transferred directly to the author to unlock the book. This would make Amazon unnecessary as the two parties to the transaction can directly interact with each other.

Why have blockchains become popular in the last few years?

The reason why blockchain has gained so much popularity is that:

Blockchain database is not stored in any single location and is hosted by millions of computers simultaneously. This makes the data impossible for the hackers to corrupt.
Blockchain technology creates a digital ledger enabling businesses to directly transact with each other across nations that does not necessitate using third parties to settle the transaction i.e. it removes the need for a trusted intermediary and makes peer to peer transactions possible. This saves a significant amount of time and money for both the parties involved.
Blockchain is immutable i.e. Data is cryptography stored inside making it very secure and can never be altered. Data is cryptographically encrypted to ensure a high level security
Blockchain technology is transparent and more users are beginning to trust the network as data once stored cannot be manipulated, amended or changed. However, all transactions that are stored on the network can be tracked and this helps to ensure that the technology is transparent and trustworthy.

Difference Between Blockchain, Cryptocurrency and Bitcoin?

Bitcoin is a decentralized digital currency that is also referred to as a cryptocurrency. It is a type of digital cash with no central bank. The main purpose of creating bitcoins was to speed up cross border transactions and to simplify the whole process without having third party interventions.

Some important points of distinction between the two are:

Bitcoin is one of the examples of blockchain.
Bitcoin is a Cryptocurrency while Blockchain is a digital ledger that allows digital information to be recorded and distributed, but not edited.
Bitcoins increase the speed of transactions with minimal government restrictions. Blockchains provides a secure and safe environment for the transfer of information.
The scope of bitcoin is limited while Blockchain has numerous applications in many industries.
Bitcoin can only be traded as a currency while the spectrum of blockchain is very wide. It can transfer anything from currencies to stocks.
Bitcoin is much less flexible while Blockchain can work with various industries.
Bitcoin is mainly anonymous while blockchain is very transparent.

Application of Blockchain in the Banking sector

Blockchain offers many unique opportunities and can revolutionize the banking sector in the coming years. The high level of safety in storing and transmitting data, the low cost of operations, the secure and transparent network and the decentralization of data have made blockchain a much in demand technology especially in the banking and financial services sector. By integrating the blockchain technology into their system, banks can process the transactions in a matter of few minutes, basically the time it takes to add a block to the blockchain, regardless of the time or day of the week.
Blockchain technology eliminates unnecessary mediators and thus helps to provide customers and banks with cheaper services. Some of the specific applications in the banking sector are:

1. Quicker financial transactions

Blockchain technology eliminates the need for a third party payment gateway by decentralizing everything. It can increase the speed with which the transaction takes place. Transactions are settled real time in blockchain technology as without an intermediary the transactions only take a few seconds to complete. For example, it can complete in seconds the securities and cash transactions that conventional stock trading may take 2 to 3 days to complete.

2. Reduced cost of financial transactions

The cost of financial transactions in the banking industry will decrease with the elimination of third parties and payment gateways. It will render third parties and their charges unnecessary by providing network enabling businesses to directly trade with each other. This will not only decrease the cost but also increase the efficiency of the banking sector.

3. Reduction of fraud

Banks face the major issue of cybersecurity and use of blockchain technology can help to reduce financial fraud. It is a technology that links each block of transactions to past transactions. More so, each transaction block has its time stamp. This helps to make trading on this platform safe and secure. Thus, the technology offers better opportunities and helps to check cyber crimes and also reduce crimes in other online financial transaction

4. Accessibility and Transparency

Blockchain technology has the ability to allow users to access transaction details at all times. Users can access the full historical data stored in blockchain’s shared ledger anytime and anywhere with internet access. No one can delete or change the transactions already done via blockchain technology. Thus, the technology offers greater transparency than traditional banking.

Conclusion

However, to deploy this technology in the banking sector, it must conform to the regulatory permissions and follow the relevant privacy laws. Increased guidance from the regulators on the governance model will help to create the value add for this technology in the coming years. This is important for security and safety of data.

In summary, blockchain has the power to revolutionize the banking sector. What is needed is the willingness of banks to implement the technology. A few banks can take the lead here to validate the technology and show the business applications.

Introduction

What is Blockchain?

Blockchain is a digital ledger of transactions and has grown as a chain like structure made of different blocks. In its simplest form, a blockchain is a distributed technology that forms a chain of blocks. It is a time-stamped series of immutable record of data that is managed by cluster of computers interconnected through a dedicated network to work as one centralized data processing resource. A blockchain uses a form of algorithm called cryptography to ensure records cannot be changed or corrupted by anyone. Information stored using a blockchain is tamper proof as all the blocks are linked together and no information in any of the earlier blocks can be altered without changing the later blocks. The blocks of data hold data in a secure and encrypted way using cryptographic principles to ensure that transactions can never be altered or changed. Data can be used only by people authorized to do so. The blockchain is an ingenious way of passing information from one party to another in a fully automated and safe manner. In fact, the blockchain technology can be programmed to record virtually all kinds of transactions of value. The blockchain network stores information across a network of personal computers making them not just decentralized but also distributed. This means no company or individual owns the data systems. Yet the information in it is open for everyone to see. Hence, the information that is built on the blockchain is both transparent and secure.

Application of Blockchain technology in the real world

In today’s digital world, where financial information is being created faster than ever, digitizing transactions is an effective response to address the explosion of data. Blockchain is likely to gain even more popularity as companies continue to modernize their technologies. (Accessed online, January/February 2018 issue of The Financial Manager magazine). Some companies that can leverage Blockchain technology are health care, banking and financial services, election records, to name a few. Health care companies can leverage the technology to securely store the medical records of the patients. The personal records of the patients can be encoded and stored safely, so that accessibility is only given to certain individuals. Blockchain technology can also help to create a tamper proof election record, eliminate election fraud and increase voter turnout. The vote can be stored as a block on the blockchain making it completely transparent and nearly impossible to tamper with. Companies like Uber and Airbnb which have recently challenged the traditional economy are now being threatened by blockchain technology. The technology has the power to disrupt their business as the blockchain opens the door to direct interaction between the parties, thus eliminating the need for a match making platform. Ebooks is another area that could be threatened by block chain. Instead of third parties like Amazon and credit card companies earning revenues from the sale, the transaction could be held directly between the author and the reader. The books would circulate in an encoded form and the money could be transferred directly to the author to unlock the book. This would make Amazon unnecessary as the two parties to the transaction can directly interact with each other.

Why have blockchains become popular in the last few years?

The reason why blockchain has gained so much popularity is that:

Blockchain database is not stored in any single location and is hosted by millions of computers simultaneously. This makes the data impossible for the hackers to corrupt.
Blockchain technology creates a digital ledger enabling businesses to directly transact with each other across nations that does not necessitate using third parties to settle the transaction i.e. it removes the need for a trusted intermediary and makes peer to peer transactions possible. This saves a significant amount of time and money for both the parties involved.
Blockchain is immutable i.e. Data is cryptography stored inside making it very secure and can never be altered. Data is cryptographically encrypted to ensure a high level security
Blockchain technology is transparent and more users are beginning to trust the network as data once stored cannot be manipulated, amended or changed. However, all transactions that are stored on the network can be tracked and this helps to ensure that the technology is transparent and trustworthy.

Difference Between Blockchain, Cryptocurrency and Bitcoin?

A blockchain is a distributed ledger technology that forms a ‘chain of blocks’ that forms the network. Cryptocurrencies are the tokens used within these networks to not only send value but also pay for these transactions. Blockchain and Cryptocurrency go hand in hand and always work together as crypto is often necessary to transact on a blockchain. Bitcoin is a decentralized digital currency that is also referred to as a cryptocurrency. It is a type of digital cash with no central bank. The main purpose of creating bitcoins was to speed up cross border transactions and to simplify the whole process without having third party interventions.

Some important points of distinction between the two are:

Bitcoin is one of the examples of blockchain.
Bitcoin is a Cryptocurrency while Blockchain is a digital ledger that allows digital information to be recorded and distributed, but not edited.
Bitcoins increase the speed of transactions with minimal government restrictions. Blockchains provides a secure and safe environment for the transfer of information.
The scope of bitcoin is limited while Blockchain has numerous applications in many industries.
Bitcoin can only be traded as a currency while the spectrum of blockchain is very wide. It can transfer anything from currencies to stocks.
Bitcoin is much less flexible while Blockchain can work with various industries.
Bitcoin is mainly anonymous while blockchain is very transparent.

Application of Blockchain in the Banking sector

Blockchain offers many unique opportunities and can revolutionize the banking sector in the coming years. The high level of safety in storing and transmitting data, the low cost of operations, the secure and transparent network and the decentralization of data have made blockchain a much in demand technology especially in the banking and financial services sector. By integrating the blockchain technology into their system, banks can process the transactions in a matter of few minutes, basically the time it takes to add a block to the blockchain, regardless of the time or day of the week. Blockchain technology eliminates unnecessary mediators and thus helps to provide customers and banks with cheaper services. Some of the specific applications in the banking sector are:

1. Quicker financial transactions

2. Reduced cost of financial transactions

3. Reduction of fraud

4. Accessibility and Transparency

Conclusion

Blockchainis being considered by many as a panacea to tackle the many challenges banks are facing. The technology is believed to be safe as it is online encrypted data base that is resistant to modification. It helps to make the data more secure and scalable. Users can control the information by eliminating the third parties involved in the transactions. The clutter and complications of multiple ledgers is reduced as banks have the opportunity to exchange funds directly between institutions more quickly and securely. However, to deploy this technology in the banking sector, it must conform to the regulatory permissions and follow the relevant privacy laws. Increased guidance from the regulators on the governance model will help to create the value add for this technology in the coming years. This is important for security and safety of data. In summary, blockchain has the power to revolutionize the banking sector. What is needed is the willingness of banks to implement the technology. A few banks can take the lead here to validate the technology and show the business applications.

The post Blockchain Demystified: A Banking Sector Perspective appeared first on IIRF.

Risk Management Programmes by PROF MADHU VIJ

Madhu Vij — Tue, 05 Jan 2021 10:56:57 +0000

In the current complex and turbulent business environment, organizations are undergoing rapid digital and process transformations and embracing newer business models to remain competitive. The business landscape of organizations has shifted focus from recession survival tactics to aggressive growth strategies. With this, the risk profile of organizations is also changing drastically along with the impact and velocity at which such risks can potentially hit the organizations. Managing risks is the priority for senior management and it is a key strategic parameter now for organizations to create sustainable value and succeed. To support organizations during these challenging times, the onus is equally on the academia to support business organizations with requisite skill sets and trained professionals and give guidance around applying a structured lens towards understanding the risk landscape and implementing risk management practices in an organization. Unfortunately, education in the risk management domain has started showing prominence only in the last few years, and that too has been limited to specific aspects of risk management like financial risk, market risk, insurance, and Enterprise risk management as a concept. There still seems to be a dearth of comprehensive risk management programmes, which are now the need of the hour as one needs to have skill sets to apply risk lens in business, tactical and strategic decision making in organizations to be able to deal with the challenging and uncertain environment. Some institutions have taken lead and are offering risk management courses with varying degrees of coverage and in different formats – classroom or online, part-time or full-time, degrees or certificate courses.

‘Master of Science in Enterprise Risk Management’ delivered by COLUMBIA UNIVERSITY in New York City since the spring of 2016 – Key domain areas covered by the programme include Value-Based Enterprise Risk Management, Traditional Risk and ERM Practices, Managing Human Behaviour in the Organization and Strategic Communications for Risk Professionals. The programme offers multiple delivery options to choose from – Online, On Campus, Full-time, Part-time

‘Master of Business Administration with a concentration in Risk Management’ delivered by the UNIVERSITY OF GEORGIA, Terry College of Business, Georgia – Key domain include corporate risk management, Risk management consulting, Employee benefits management / consulting, and Insurance brokerage

‘Post Graduate Programme in Risk Management’ delivered by the Global Risk Management Institute, Gurugram, India – The institute offers a one-year full-time classroom programme for graduate students and delivers 1,000+ hours of experiential learning. The PGPRM programme provides comprehensive coverage of varied aspects of risk management including Enterprise Risk Management, Internal audit, Sox methodology and implementation, Cyber risk, IT risk management, Regulatory & Compliance risks, and use of data analytics and digitalization aspects in risk management across various industry verticals.

‘Master of Science in Enterprise Risk Management’ delivered by Boston University, Boston – Key domain areas include Financial Concepts, Quantitative and Qualitative Decision-Making, The Innovation Process: Developing New Products and Services Business Continuity Management

‘Master of Science in Financial Analysis and Risk Management’ delivered by Temple University, Fox school of business, Philadelphia, Pennsylvania. The university has a unique curriculum that supports pursuing both the Chartered Financial Analyst (CFA) Exam Levels I through III and the Financial Risk Management (FRM) Exam Parts I and II. Key domain areas include Corporate value management, Derivative valuation, Enterprise risk management, Investment Management, Leveraged buyout (LBO) and merger and acquisition (M&A) transaction analysis, Machine learning in finance, Numerical valuation methods, Quantitative fixed-income modeling, Financial risk management

PMI- RMP (Risk Management Professional) certification delivered by Project management Institute -HQ- Newton square, Pennsylvania, US. PMI RMP covers risks knowledge across 5 domains – Stakeholder engagement, Risk process facilitation, Risk monitoring, and reporting, Perform specialized risk analyses

‘Global Qualifications in Enterprise Risk Management’ delivered by the Institute of Risk Management, UK – The curriculum includes Principles of Risk and Risk Management, Practices of Risk Management and delivers the programme over five modules

Chartered Enterprise Risk Analyst (CERA) certification delivered by Society of Actuaries (SOA) – Schaumburg, Illinois, United States. Key concepts covered as part of the programme include Qualitative aptitude, Quantitative aptitude, ERM – practical and theoretical, Understanding the actuarial approach to risk, General risk management

Certified Risk Manager (CRM) delivered by National Alliance for Insurance Education and Research – Austin, Texas. This certification covers Principles of Risk Management, Analysis of Risk, Control of Risk, Financing of Risk, and the Practice of Risk Management.

Financial Risk Manager (FRM) delivered by The Global Association of Risk Professionals (GARP), New Jersey. Part 1 of the programme focuses on Financial risk including quantitative analysis, fundamental risk management concepts, financial markets and products, and valuation and risk models. Part 2 of the programme covers Market, credit, operational and integrated risk management, investment management as well as current market issues.

Reference:

https://sps.columbia.edu/school/our-leadership#toc-4
https://www.terry.uga.edu/alumni/rmi-advisory-board.php
https://www.bu.edu/trustees/boardoftrustees/members/
https://secretary.temple.edu/committee-membership
https://www.pmi.org/about/leadership-governance/board-of-directors
https://www.pmi.org/certifications/types/risk-management-rmp
https://www.soa.org/about/governance/board-and-leadership/board-of-directors/
https://www.soa.org/education/exam-req/edu-cera-req/
https://www.scic.com/academy-board-members/
https://www.scic.com/crm/
https://www.garp.org/#!/about/board-of-trustees
https://www.garp.org/#!/home
https://grm.institute
https://www.theirm.org/

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