Basel-II to act as a driver for risk practices says PREMIA

Mumbai, May 29 | Updated: May 30 2007, 05:30am hrs
The Basel-II norm will act as a driver for banks and financial institutions for more stringent risk management practices. Speaking to FE, chief operating officer of Professional Risk Managers International Association (PREMIA), David Millar, said, There is a high awareness about the risk management practices in the financial sector globally today and within a year, every single bank in the country will have a risk managers working for them as the banks turn Basel II compliant by March.

However, the problem is that risk management is a young profession. It was merely 20 years ago that people thought of looking at it as a single cure of various diseases prevalent among the financial institutions. More precisely, it was only a decade ago that the banks and FIs started appointing risk managers. This was a major shift as earlier the same job was being executed by credit manager.

PREMIA has got its presence in 176 countries and has 4500 members associated to it in India alone.

Risk management has now become almost essential for financial institutions like airlines, construction and oil firms among others to have risk managers with them.

On his meeting with the Reserve Bank of India officials, he said the RBI was keen to accelerate the knowledge of risk management among the Indian banking community.