Written by Ameer Muhammad Jaffrey Monday, 08 February 2010 03:09
This is to more severe without monitor and controls, risk can not be minimized while in diverse investment, range of risk management tools ensure their competitiveness across the world should be fully implemented such as; Basel-II. A global implementation of the Basel-II- is a cycle of proposals on banking laws and regulations to create an international standard. There has been a major risk that can come from uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural causes and disasters as well as deliberate attacks from an adversary.
The risks have been identified and assessed by four major categories, should be focus:
- Avoidance (eliminate)
- Reduction (mitigate)
- Sharing (outsource or insure)
- Retention (accept and budget)
It will be greater chance to minimize the banking risk after all four major techniques but relatively Basel-II is an advanced technique and approach. Here there is need to skilled professional in risk management in the UAE.
From the ground realities, In the University risk studies should be implemented compulsory as well as thesis and practical based projects that are highlighted in the UAE banking sector. Thus, this thesis is conducted through questionnaire answered by risk managers across UAE banks.
There are three main parts of questionnaire focused on major areas;
- Degree of understanding and implementation of risk management
- The most efficient tools and techniques available for the management of risk
- Managers should aware of the risks associated with their actions and goals
As from the above questionnaire approach, if Basel-II hindrance comes across the bank, first it will be identify but the fact is in UAE Basel-II accord are still in the implementing phase. This is somewhere mentioning it is not sufficient to protect banks against all risks. However, it is noted that these collapses were quoted on the inability of banks to actually manage their customer and capital risks, and not on the inadequacy in the Basel-II accords.
The banking and finance climate has changed with Basel-II that is being implemented in UAE banks. This will be very fruitful affect after the implementation of Basel-II agreement entire the organization to learn affectively and efficiently.
