Vink: Global pro-actively applies risk management to ensure sustainable growth

Stephen Vink, Head of Group Risk Management division at Global, said that the company has actively decided to follow practices which comply with international standards and benchmarks.

Although the regulatory requirement in Kuwait to have an independent risk management function is only applicable to retail banking institutions, Global has pro-actively decided to follow these practices by developing a Group Risk Management division and thereby ensuring that Global prevents any dilemmas that would effect the company's growth and stability, he affirmed.

"The division is set-up to respond to increasing demand on employees to be more efficient in their risk decision making process, and at the same time it helps develop new skills to strengthen their ability to predict, evaluate and manage risk," said Vink.

The company official pointed that it is important for an organization to have an appropriate risk management framework in place. Such framework encompasses an approach to effectively identify and ensure that any risk that could occur will not prevent the organization from achieving its planned goals and objectives.

The Group Risk Management division is currently developing a framework that involves extensive communication and training as the framework's management principles is distributed through the organization and monitored on a regular basis.

The management of risk is not only a mature and responsible way of doing business, but has become compulsory as part of the day-to-day management approach of any organization. In order to make good business decisions and to preempt any unexpected events that might occur, added Vink.

Global has made a commitment to strive to be a leader in the region with regard to the manner it applies risk management processes. This is seen by Global as part of their social responsibility towards all stakeholders.

The Board has delegated accountability for the identification of risks and the detailed design, implementation and monitoring of adequate systems of internal, financial and operating controls to senior executive management responsible for the various divisions.

Vink concluded by saying that Global has implemented various projects to ensure that the day-to-day risks such as financial, operational, fraud and regulatory, are adequately managed, and that the more high level risks such as strategic, people and culture, are effectively identified throughout all divisions.

Global's vision is not only to be the preferred investment bank in the Middle East, but also to become a major player in the region in setting an example of prudent business practices. This not only adds value to its stakeholders but also to society, clients, and the organization.