Blogs

Recently, I read the above article on the net. It mentioned that The Reserve Bank of India (RBI) has asked banks to develop a unique system of customer identification across the banking system. Clearly, we know the fundamental reason why this is required. Today, many borrowers are approaching multiple Banks to access the Banking money. Which Bank has granted the loan and which has refused it is not known to other Banks. In other words, the Borrower's borrowing history and default history is not fully available to the lending institutions.

Derivatives are strange instruments indeed. Some countries like them, some don't. Some regulators are against them and others are not. But, nonetheless, Derivatives play a very important part in the overall management of future exposures and liabilities. For the insurance industry that has very long dated liabilities, it does not have sufficient instruments currently to address those liabilities. Investing in Government paper, highly rated debt usually provides low returns.

For those who are passionate about ERM and risk management, take a look at the new Risk Appetite document from COSO. It is up for public comments. We think this is a great document and clearly explains how the tone for an effective risk management is set.

 We invite comments, views and articles on the topic from our users. We will share these views on our website.

We have compiled some interesting reading on Risk Management using Goolge Alerts. The following are some links to online content that you may find interested and enriching to read.

Happy Reading