Financial Supervision: Developing the capabilities of professionals in the non-banking sector is a necessity to achieve stability

This Sunday morning, the activities of the first international forum on risk management, organized and hosted by the Financial Supervisory Authority, through its training arm, the Institute for Non-Banking Financial Services, and organized in cooperation with the Frankfurt School of Finance and Management (Frankfurt School) and the German Agency (GIZ), with the participation of a number of international experts, kicked off. Those with specialized experience in risk management.

Dr. Mohamed Farid, Chairman of the Financial Supervisory Authority, said that holding this forum for the first time aims to spread awareness and culture of risk management among officials in the non-banking financial services sectors, exchange experiences with specialized international expertise houses, and learn about international best practices in light of the development of risk management science. To raise the efficiency of employees and increase the level of professional performance and the effectiveness of practical application.

Farid added, in a press statement, today, Sunday, that the EFSA’s hosting of the forum comes as part of the authority’s efforts to develop the capabilities and hone the skills of workers in the non-banking financial sector, which helps to enhance the solidity and flexibility of non-banking financial institutions to sustain growth and development. Two specialized training programs were recently implemented to activate the role of risk management in securities brokerage firms and upgrade the level of their employees. A training program was also implemented to prepare and submit disclosures related to the financial effects of climate change, for companies operating in the non-bank financial sector, in cooperation with the Frankfurt School of Management and Finance. .

The head of the authority indicated that the development of the supervisory method from the traditional method to risk-based control aims to reduce the degree of various risks facing financial institutions to the lowest possible level before any problems occur, not after they occur, due to the need to preserve the rights of customers, especially that the majority of sector institutions The non-bank financial management undertakes the management and investment of the funds of others, which requires continuing the development of the risk-based control approach through the establishment of controls in a manner that ensures the effectiveness of the efficiency of operations and compliance with the regulatory controls and rules while preserving resources and the growth of business volume with the need to continuously assess the extent of vulnerability The financial sector to be affected by financial and economic crises as an early warning tool in case the financial system is at risk.

Farid added that the authority aims, in all controls and legislation that it works on formulating or amending, to emphasize the responsibility of non-bank financial institutions with regard to adopting risk management policies, whether operational, credit or market, and that the authority requires the presence of a risk officer and a policy guide for risk management as one of the Licensing requirements for financial institutions subject to its control. In view of the environmental changes and successive global events, and in order to face crises that may arise in the future, the integration of environmental and geopolitical risks, and the introduction of green financial products have become among the priorities of the work of the Authority.

He added that this forum aims to find a common ground for the convergence of international and local expertise in the field of risk management, exchanging experiences and presenting the best experiences and practices with the aim of empowering professionals and regulators to play their role in this field, thus building a cohesive professional community to meet the increasing challenges and reduce risks facing financial institutions.

The forum includes five discussion sessions dealing with a number of topics related to risk management in financial institutions, where risk-based supervision is clarified, the principles and objectives of risk-based supervision “RBS” are defined, the role of risk management is clarified with the application of the three lines of defense model, and global trends in regulation and control are identified. In addition to presenting the principles and objectives of business continuity planning and BCP & BIA business impact analysis in non-bank financial institutions in the NBFIs, as well as environmental, social and corporate governance requirements for managing non-financial risks (ESG), financial disclosures related to the financial implications of climate change TCFD and global trends towards green finance .

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