March 23, 2009 (LBO) – The International Finance Corporation said it is helping bank executives in Sri Lanka and other South Asian countries to understand and better manage risks in the wake of the global financial crisis. “The financial crisis has taken a global form, affecting people’s livelihoods directly and indirectly all over the world,” said Per Kjellerhaug, IFC Regional Manager for South Asia.
Michael Higgins, IFC Principal Banking Specialist, said poor risk management practices have resulted in the current financial crisis, causing a severe credit crunch, and banks need to win back investors’ trust.
The IFC, part of the World Bank Group, hosted a workshop recently in Colombo following sessions in India and Bangladesh which discussed coping strategies and best practices for managing risks during tough times.
The workshop helped the banking industry discuss liquidity, risk management practices, risk mitigating approaches and early warning signals to watch out for.
Lakshmi Shyam Sunder, IFC Director for Corporate Risk Management emphasized that good risk management is not about mechanically adopting best practices but it is about the right balance between elements such as independence and act