RIMAN Calls for Increased Investments in Technology to Mitigate Banking Sector Risks (LEAD NEWS PAGE 2)

Nume Ekeghe

Risk Managers Association of Nigeria (RIMAN) has urged banks to increase investments risk assessment tools to mitigate the increased risks that come with digitisation in the banking sector.

President RIMAN, Mr. Magnus Nnoka stated this while speaking at the 20th Annual International Conference of the Risk Management Association of Nigeria, where stakeholders gathered to deliberate on ‘Risk Management in a Digital Era.’

Nnoka said: “The rise in digital assets and channels consequently lead to emerging and evolving risk types, therefore, we are seeing increasing digitisation of risk. Even as organisation seek increasing digitisation, we can readily identify few of the drawbacks on this journey, these include Legacy Information asset, organizational culture, data quality, dearth of requisite talent and complexity of organizational structure.”

He noted that in the digital era, risk management professionals should be required to review and reshape their mandate and roles, develop digitally driven mindset and capacity to provide faster, more forward-looking, and deeper insights in driving the new working environment.

He added: “Furthermore, concerns have been raised not by a few, that technological innovation or digitalization specifically in the banking sector appear to be concentrated mostly on customer-facing journeys such as online banking and marketing and the activities that support these journeys such as customer onboarding, customer servicing and resolution of complaints.

“It is my submission that Managing risk in a digital era should be supported by adequate and appropriate investment in digitalisation of risk management Digital risk transformations should be pursued intentionally by organisations It will be increasingly challenging for risk management approach to stay analog while customer-facing activities and operations race ahead into digital.”

In his keynote address, Managing Director of First Bank of Nigeria Limited, Mr. Adesola Adeduntan said risk managers should be well equipped to better manage emerging risks in a digital world.

Adeduntan who was represented by Group Executive Treasury & International Banking Group of First Bank, Mr. Ini Ebong said risk leaders are expected to provide the required support that will enable their organizations to remain resilient amidst uncertainties and growing complexities in an operating business environment.

He said: “Given that digital technology has become an integral part of most businesses especially financial services businesses, risk leaders will need to be well equipped to better manage the emerging risks in the digital era. Risk leaders are expected to provide the required support that will enable their organizations to remain resilient amidst uncertainties and the growing complexities in the operating and business environments.

“Today’s risk management function must have a seat at the table be involved in the digital transformation journey, from strategy to implementation as risk leaders and professionals need to be active players in setting the organization’s technology and digital vision being an interested spectator is not an option. The risk function will need to have a far greater share of digital-savvy people with fluency in the language of both risk and the business, operating within an agile culture that values innovation and experimentation.”

He further added that risk leaders need to proactively adapt to a fast-changing risk environment manage through, recover from disruptions, forecast and mitigate the potential risks in the digital era.

“Risk leaders must remain focused on repositioning the risk function to safeguard growth and spend more time on value-adding activities and risk leaders need to investment in the right tools, technology and techniques to be better equipped in identifying and navigating threats faster and more effectively in a digital era, ”he added.