BankMuscat hosts first Risk Officers Committee meeting

01 February 2011
Source : BankMuscat

BankMuscat, the leading financial services provider in the Sultanate, hosted the 1st meeting of Risk Officers Committee (ROC) comprising risk officers of banks in Oman. The committee was formed with a view to facilitate exchange of knowledge and keep abreast with the latest developments in the ever evolving field of risk management.

Participating in the inaugural session, Sheikh AbdulMalik bin Abdullah Al Khalili, Chairman of BankMuscat welcomed the formation of the committee and said it would help strengthen the Omani banking industry.

Welcoming the chief risk officers of banks in Oman, AbdulRazak Ali Issa, Chief Executive of BankMuscat, said: “Risk management has made significant strides over the last one decade  – partly owing to initiatives by banks and partly due to the fast changing economic environment in the world. Banks today are not just commercial entities but key pillars of the economy. Events of the recent past where governments across the world stepped in to provide unprecedented support to banks in need points to the importance of the banking sector. This realisation that the well-being of banks has a direct impact on the national economies has led to a change in perspective of how banks are managed - more particularly on how banks identify risks, measure them and manage them. The added focus on risk management which started with the implementation of Basel II accord has only grown since then.” 

AbdulRazak added: “An effective risk management is the foundation for sustained profitable growth of banks and it was in pursuance of this belief that BankMuscat strived to develop risk management as an area of core competence.”

AbdulRazak thanked the Central Bank of Oman who through regulatory guidelines, banking supervision and well planned investment has helped usher in an era of increased financial transparency, improved risk measurement and reporting in all core risk areas of banks - credit, market, liquidity and operational risk.

AbdulRazak noted that there had been a growing need for a forum for risk officers of banks to get together and discuss key areas of risk management, share ideas and pool data to validate risk models and take the Omani banking industry forward. The Risk Officers Committee in Oman will help address this need, he said and wished the committee success in its work.

Basim Haroon Al Zadjali from Central Bank of Oman said: “The risk profile of individual banks vary due to difference in clientele base, risk culture and business strategy. However, there are common risk issues on which exchange of ideas would definitely help. The CBO appreciates and supports the initiative taken by banks in general and BankMuscat in particular in forming the Risk Officers Committee. Against the backdrop of recent global financial crisis and implementation of advanced risk measurement approaches under Basel II framework, the convening of Risk Officers Committee meeting is most appropriate. The committee as part of its stated objectives should promote healthy debate and discussion on the latest risk management practices.”

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