Risk management practices of specialized banks in Pakistan

2020 ◽  
Author(s):  
Muhammad Ishtiaq ◽  
Muhammad Shahid Tufail ◽  
Muhammad Mateen ◽  
Saqib Muneer
Keyword(s):  
Risk Management ◽  
Financial Crises ◽  
Management Practices ◽  
Management Practice ◽  
Central Banks ◽  
Important Place ◽  
Management Guidelines ◽  
Basel Accords ◽  
Risk Management System ◽  
And Performance

The issue of risk management in banks got an important place after the financial crises. Several efforts have been made to improve the risk management and performance of banks including introducing the Basel Accords as well as risk management guidelines by central banks. Consequently, the State Bank of Pakistan has issued risk management guidelines to strengthen the risk management system and to avoid unwanted happening. Specialized banks also play an important role in different sector of economy. As being the part of financial system need is to analyze the degree of Risk Management Practice in these banks also. So this study will be efforts to critically evaluate the specialized banks regarding risk management practices in their operations. Keywords:Risk Management Practices, Specialized banks

An Investigation of Credit Risk Management Strategies of Private Commercial Banks of Bangladesh

2014 ◽  
Vol 2 (2) ◽  
pp. 77-87
Author(s):  
Abu Hanifa Md. Noman ◽  
Md. Amzad Hossain ◽  
Sajeda Pervin
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Commercial Banks ◽  
Management Practices ◽  
Management Practice ◽  
Management Strategies ◽  
Third Party ◽  
Primary Data ◽  
Credit Risk Management ◽  
Risk Management Strategies

Objective - The study aims to investigate credit risk management practices and credit risk management strategies of the local private commercial banks in Bangladesh. Methodology -The investigation is conducted based on primary data collected from a set of both closed end and open end questionnaire from 23 out of 39 local private commercial banks in Bangladesh. Descriptive statistics has been used in processing the data and interpreting the results. Findings - The results reveal that credit risk management practice of the sample banks is sound which is attributed to the appropriate implementation of Basel II and credit risk management guidelines the country's central bank. The findings further show that use of Credit risk grading is most popular and effective criteria for measuring the borrowing capacity of the borrowers. In order to control credit risk and preventing losses from credit exposure banks give more focus on collateralization, accurate loan pricing and third party guarantee. Loan is monitored properly and credit reminder is given to the client if principal and interest remain outstanding for three months. The study further reveals that lack of experienced and trained credit officers, lack of genuine market information and Lack of awareness regarding non-genuine borrower are the most important problems of current credit risk management practices in Bangladesh. Novelty - To the best of the knowledge of the authors the study is the first that investigates credit risk management strategies of private commercial banks, especially on Bangladesh. Type of Paper - Empirical Keyword : Bangladesh; Commercial Bank; Credit risk; Credit risk management; Credit risk management strategies.

scholarly journals BUSINESS RISK MANAGEMENT PRACTICES ADOPTED BY ENTREPRENEURS FOR BUSINESS SUCCESS IN DELTA STATE

2021 ◽  
pp. 1-7
Author(s):  
Samuel Ikelegbe ◽  
Romanus Udeh
Keyword(s):  
Risk Management ◽  
State Government ◽  
Management Practices ◽  
Management Practice ◽  
Business Management ◽  
Business Owners ◽  
Business Success ◽  
Business Risk ◽  
Level Of Significance ◽  
Structured Questionnaire

The study was a survey research; it focused on determining the extent entrepreneurs adopt risk management practices for business management practice in Delta State. The population of the study comprises of 860 business owners who are registered with the Ministry of Commerce and Industries in Delta State. The instrument for data collection was a structured questionnaire with 16 items. Data collected were analyzed using mean and Standard deviation. The null hypothesis was tested using ANOVA statistics at 0.05 level of significance. Findings from the investigation revealed that entrepreneurs in Delta State do not adopt business risk management practices in managing their businesses. It was recommended among others that the Delta State Government and Ministry of Commerce and Industries should sensitize business owners on business risk management practice to enhance business success.

Maintaining Financial Stability in the Banking Sector

2019 ◽  
pp. 30-48
Author(s):  
Meltem Gurunlu
Keyword(s):  
Risk Management ◽  
Management System ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Capital Adequacy ◽  
Basel Accords ◽  
Risk Management System ◽  
Strategic Approach ◽  
Global World

Maintaining financial stability in the banking sector through a well-functioning risk management system is a strategic approach in today's global world where the risks have become much more diversified than ever. This chapter was undertaken in order to investigate the risk management topic by focusing on the experiences learned from the banking crises up-to-date and implications of the Basel Accords which outlined capital adequacy standards to prevent such crises. With paying special attention to the case of Turkish banking system, main challenges and possible solutions are also discussed.

scholarly journals Actuarial Risk Management Practices, Underwriting Risk and Performance of P & C Insurance Firms in East Africa

2017 ◽  
Vol 13 (22) ◽  
pp. 207
Author(s):  
Caren B. Angima ◽  
Mirie Mwangi ◽  
Erasmus Kaijage ◽  
Martin Ogutu
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
East Africa ◽  
Management Practices ◽  
Ripple Effect ◽  
Loss Ratio ◽  
Insurance Firms ◽  
Actuarial Risk ◽  
And Performance ◽  
The Relationship

The purpose of the study was to establish the intervening effect of underwriting risk (loss ratio) on the relationship between actuarial risk management practices (ARMP) and performance of property and casualty (P & C) insurance underwriters in East Africa. Findings from primary and secondary data gathered from 82 general insurers from Kenya, Uganda and Tanzania show that there is a significant positive relationship between ARMP and non-financial performance and that loss ratio significantly mediates this relationship. The relationship with financial performance was however insignificant. The implication is that P & C insurance firms should keenly watch their loss ratios in order to improve their non-financial performance by correctly underwriting, pricing and reinsuring their risks in order to influence their claims ratio and also have a strategic claims management program in place that controls costs and leads to better firm reputation, which in turn will have ripple effect in increasing business volumes and performance. It is recommended that further empirical studies be carried out to establish other factors that especially influence financial performance.

scholarly journals The Influence of Risk Management on Construction Project Performance: A Case Study.

2018 ◽  
pp. 936-942
Author(s):  
Mazurina Mohd Ali ◽  
Sakinah Zahra Norman ◽  
Erlane K. Ghani ◽  
Noor Hasniza Haron
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Management Practices ◽  
Management Practice ◽  
Methodological Approach ◽  
Construction Project ◽  
Project Performance ◽  
Time Cost ◽  
Schedule Delay

Risk Management is recognized as an important exercise that creates value to a project and improves project performance. Time, cost and quality are the primary measures of a project performance in this industry. The success or failure in any construction project can be monitored through the attainment of these primary measures. Notably, Malaysian construction industry is considered as one of the important industries that positively contribute to the increase of Gross Domestic Product and subsequently the growth of the country’s economic development. Unfortunately, this industry suffers poor performance in which it leads to failure in accomplishing effective time, cost and quality performance. Most construction projects face a schedule delay, cost overrun and are poor in product quality. Thus, the aim of this study is to determine the influence of risk management on construction project performance of Malaysian companies based on these three primary measures. The degree of diffusion of risk management practice in the chosen construction project in Malaysia is also examined. The methodological approach exploited in this study is a case study approach involving analysis of documented data and face-to-face interviews with key players that hold different roles and responsibilities. They include a director, project managers, finance managers, contract managers and quantity surveyor managers. The results demonstrate that adopting effective risk management practices positively impacts project performance thus leading to project success. Nevertheless, the lack of knowledge and poor communication of risk management practices in construction projects contribute to the weak implementation of an effective and systematic risk management practices in Malaysia.

scholarly journals Implementation of Bio-Risk Management System in a National Clinical and Medical Referral Centre Laboratories

2021 ◽  
Vol 18 (5) ◽  
pp. 2308
Author(s):  
Fatma Lestari ◽  
Abdul Kadir ◽  
Thariq Miswary ◽  
Cynthia Febrina Maharani ◽  
Anom Bowolaksono ◽  
...  
Keyword(s):  
Risk Management ◽  
Management System ◽  
Emerging Infectious Diseases ◽  
Medical Decision ◽  
Referral Centre ◽  
International Standard Organisation ◽  
Risk Management System ◽  
Laboratory Facilities ◽  
And Performance ◽  
Medical Referral

The increasing threats from biological agents have become a concern in laboratories, and emerging infectious diseases have demanded increased awareness and preparedness of laboratory facilities. Bio-risk assessment is needed to provide a framework for organisations to establish a comprehensive bio-risk management system. The assessment criteria should include both biosafety and biosecurity measures. Laboratories in Indonesia play a significant role in public health interventions in term of disease screening, diagnosis and medical decision making. The National Clinical and Medical Referral Centre Laboratories have the potential of daily exposures to dangerous biological materials. This study aims to identify the gap between bio-risk management system implementation and International Standard Organisation (ISO) 35001:2019 requirements. The 202 items in ISO 35001:2019 are categorized into seven main elements. The findings show that more than half of the elements on ISO 35001:2019 have been implemented in these centres. Good performance was identified at lab 4 and 5 which obtained the highest scores, particularly in the context of organisation, planning, operation and improvement elements. However, the widest gap was found in leadership, support and performance evaluation. One way to address this would be to create written rules and regulations at the laboratory top management level to require all laboratory facilities to comply to the bio-risk policies, rules, and regulations.

scholarly journals Exploring the Relationship between Risk Management and Business Strategies in the Sports Goods Industry in the City of Sialkot in Pakistan

2021 ◽  
Vol 8 (4) ◽  
pp. 184-199
Author(s):  
Shah Khalid
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Management Practices ◽  
Management Practice ◽  
Business Strategies ◽  
Structured Interviews ◽  
Competitive Situation ◽  
Reputational Risk ◽  
The City ◽  
Sports Goods

The purpose of this study is to explore the current state of risk management practice and the influences on it, particularly concerning competitive positioning, in the sports goods industry in the city of Sialkot, Pakistan. This study is based on the analysis of twenty semi-structured interviews. It was conducted with the owners and other key decision makers of sports goods SMEs in Sialkot. The findings indicate that the main obstacle faced in improving risk management practices relates to underestimation of their link to competitive strategising while determining the long-term strategic options. The value of this study lies in its potential to highlight the competitive situation of Pakistani SMEs within the sports goods industry in the face of increasing competition on the international scale. This study identifies the mutual impact of various types of risks, such as financial risk, reputational risk, strategic risk and price fluctuation risk, on adoption of a particular competitive strategy by SMEs. Altogether, it raises SMEs’ awareness of various business scenarios which would allow them to recognise risks earlier and improve their competitive standing.

scholarly journals RISK MANAGEMENT AS A NEW VECTOR IN THE MEDICAL INSTITUTION COORDINATE SYSTEM

2018 ◽  
pp. 92-98
Author(s):  
E. V. Ivanova
Keyword(s):  
Risk Management ◽  
Management System ◽  
Management Practice ◽  
Point Of View ◽  
Medical Institution ◽  
Decision Making Process ◽  
Management Tools ◽  
The Sustainable Development ◽  
Risk Management System ◽  
Medical Diagnostic

Risk management practice becomes an integral part of the management system of the medical institution. The deployment of risk management system contributes to the sustainable development of the organization by enhancing the decision making process and ensuring a balance between risks and opportunities. The risk management tools within the approaches of COSO, ISO and JCI standards, which, from the author’s point of view, can be effective for the management of typical risks of a medical diagnostic institution, are considered in the article.

scholarly journals Luxembourg

2017 ◽  
Vol 17 (260) ◽  
Author(s):  
Keyword(s):  
Risk Management ◽  
Financial Market ◽  
Commercial Banks ◽  
Management Practices ◽  
Central Banks ◽  
International Organization ◽  
Settlement Systems ◽  
Significant Dependence ◽  
The Us ◽  
Central Securities Depositories

This report assesses the risk management practices of Clearstream Banking Luxembourg (CBL) based on the Committee on Payment and Settlement Systems–International Organization of Securities Commissions (CPSS-IOSCO) Principles for Financial Market Infrastructures. The findings reveal that a range of principles are in broad observance. A key priority is to reduce CBL dependence on commercial banks in its daily operations. There is significant dependence on a limited number of depository and cash correspondent banks, in particular for the US and UK markets. This dependence could be actively mitigated through an increase in the number of contracted banks or, where possible, the establishment of direct links with local central securities depositories and central banks.

scholarly journals STUDY ON RISK MANAGEMENT PRACTICES ON PUBLIC BUILDING CONSTRUCTION PROJECT: IN CASE OF EASTERN WOLLEGA ZONE

2021 ◽  
Vol 6 (3) ◽  
Author(s):  
Zelalem Mebrate Ejeta ◽  
Zelalem M ◽  
Vignesh Kumar M ◽  
Getnet Tadesse ◽  
Biftu Jaleta
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Management Practices ◽  
Management Practice ◽  
Construction Project ◽  
Research Work ◽  
Building Construction ◽  
Market Condition ◽  
Public Building ◽  
Project Objectives

The Construction Industry is embedded with risky situations that affect construction projects and therefore requires systematic processing to achieve project objectives and ensure business sustainability (5). This research work was tries to study the risk management practice on public building construction projects and aims to identify the level that use of risk management practice especially in the public building. The data collection method was a combination of interview and questionnaire. Samples were purposively selected from clients, consultants, and contractors representatives who are now actively participating in public building construction projects. For this study, the data was collected using both primary and secondary sources. Depending on the data that was gathered from the respondent to test the level of awareness, identifying the Risk that affect the performance of public building construction project and major risk management practice on public building construction project are considered and the RII was used to rank the factors. This data was analyzed using SPSS of version 22 to perform descriptive statistics. A total of 75 questionnaires were targeted to be distributed and out of those 50 which is 66.67% are successfully responded. The finding from this study revealed that, about (52%) of the project progress is lagging from the schedule. Regarding the awareness of the risk management, (94%) of the respondents where confirmed that they have awareness of risk management ideologies and they are confident enough to implement their knowledge while, (6%) of them have no concept about the risk management. The top five risks that affect the performance of construction project have been identified and ranked. Accordingly; market condition, unexpected inflation, local taxes, inadequate production of raw materials, and the economic condition of country are the top five identified associated project risks.

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