Singapore – The United Overseas Bank (UOB) and the Asian Bankers Association (ABA) conducted a one-day training program on operational risk management in Singapore on August 5, 2013. The program, with the theme “Establishing an effective operational risk management framework: A bank’s perspective” was led by Mr. Henry Yeo, UOB’s executive director in group operational risk management (ORM) division. The program was attended by eighteen delegates from nine different banks across Asia_ First Commercial Bank Singapore branch, Bank of Maldives, VietcomBank, The Bank of East Asia Ltd. Hong Kong and Singapore branches, Bangkok Bank PCL Ltd., Canadia Bank Cambodia, ST Bank Laos, Banque Pour Le Commerce Exterieur Leo (BCEL Laos), and Agricultural Promotion Bank Laos.
Mr. Yeo started off by providing a clear definition of operational risk and expounded on the need to manage it. He said changes in the banking industry are very rapid, citing the use of new technology, emerging markets, outsourcing and other external factors, hence the need to manage operational risk.
The regulatory requirements for operational risk management and the operational risk framework were explained to the participants. Mr. Yeo gave a thorough discussion of Basel Accord, including regulations and guidelines on risk management practices. His talk also touched on the ORM framework, “It is important to find a governance structure that is more suitable for the bank,” stressed Mr. Yeo.
During the afternoon session, UOB’s vice president on operational risk management Ms. Josephine Lee, spoke about operational risk event reporting. Ms. Lee went through the cause and effect relationship of operational risk, and gave several examples of operational risk incidents. In the event of operational risk, Ms. Lee said it is necessary to take preventive actions to avoid recurrence.
Mr. Thomas Berlivet, head of consulting services of the Asia Pacific operations from MEGA International, was invited to share his insights on the implementation challenges and critical success factors of operational risk solution. MEGA is a company that provides software solutions and consulting services for operational governance designed to help business organizations to mitigate risks.
The training program is part of ABA’s short-term visiting program which aims to provide member banks the opportunity to study and undergo training on specific aspects of the operations of the more advanced host banks, such as UOB. It aims to enable visitors to enhance their technical skills and knowledge in specific areas such as international banking, treasury activities, investment, and foreign exchange in the distinct social, economic, and business environment of the host country.
Held at the ParkRoyal on Pickering Hotel Singapore, the participants of the training program included Mr. Wen Han Wu, senior assistant vice president and deputy manager, and Mr. Shih Yen Chan, assistant manager, First Commercial Bank, Singapore Branch; Mr. Yamin Adam, head of operational risk and compliance, and Ms. Mariyam Hameed, manager of operational risk, Bank of Maldives; Ms. Doan Song Ngan, deputy director of operational risk management department, Vietcombank; Ms. Nancy T.K. Fung, head of operational risk management department, The Bank of East Asia Ltd., Hong Kong; Ms. Angelia M.C. Sam, head of risk management department, The Bank of East Asia Ltd., Singapore; Mrs. Wilawan Sutthibutr, senior vice president of credit policy division, Mr. Anurak Aumkreau, vice president of data audit division, Mrs. Wilasana Weesakul, vice president of operational risk management division, Ms. Wanshat Luksanasut, assistant vice president of operational risk management division, Bangkok Bank PCL Ltd.; Ms. Sokuntheary Ath, head of risk management department, Canadia Bank; Mr. Xaysana Xaysoulivong and Mr. Ekalard Rattanachan, deputy managing directors, ST Bank Co., Ltd.; Mr. Vangmany Sayavong, staff of R&D department, Mr. Suksamon Sumphonphakdy, deputy head of loan section, Banque Pour Le Commerce Exterieur Lao (BCEL); Mr. Thavon Khemkham, deputy director, Ms. Thouda Thepsimevang, deputy international relation division, Agricultural Promotion Bank.