Created this for a newly setting up bank

1. MY APPROACH TO
CRO ROLE
- Ramesh Gupta

2. MY PERSONAL PROFILE
• Qualification: B.Sc., (Mathematics), MBA (Marketing)
• CAIIB (At par with PG in Banking & Finance)
• FRM, PMP, PgMP, Certified Market Risk Professional, Digital Banking Professional,
NSE Dealer, CFA Level 1
• Experience: 20 yrs of rich experience in Risk Management & implementing banking solutions
• Worked with prominent banks like Credit Suisse – Singapore, State Street – USA,
Danske Bank – Denmark, Emirates NBD Bank, Mashreq Bank – Dubai, Ned Bank –
Namibia / SA, Lakshmi Vilas Bank – Mumbai, FSDH – Lagos (brief period)
• Prominent IT companies – Oracle Financial Services, CARE Risk Solutions, ITC
Infotech
• Regulators – Reserve Bank of India (RBI), Reserve Bank of Malawi (RBM)
• Internal and External Audit Firms, Credit Bureaus, DICGC, EXIM Bank, Consulting
Firms

3. SKILLS REQUIRED (ALONG WITH HIGHER
COGNITIVE SKILLS)
Non Cognitive Skills Risk Professional Status
- Leadership quality
- Teamwork abilities
- Teamwork orientation
- Attention to detail
- Tireless, goal-centeredness
- Humility
- Emotional intelligence
- Appreciation of the “Big Picture”
- Rapport with difficult, business
executives and the CEO
- Conscious attitude to rooting out self-
biases
- Risk professional status
- FRM, PRM, other certifications
- Statistics and analytical orientation
- Value-at-Risk (VaR) and tail loss
essentials
- Analytical abilities
- Ability to review technical work
- Sufficient understanding of technical
aspects of the business
- Predictive analytics
- Performance analytics
- - Data and systems knowledge

4. ENTERPRISE RISK MANAGEMENT (ERM)
• The risk management function is responsible for
identifying, measuring, monitoring, controlling or
mitigating and reporting on risk exposures.
• To provide value to its stakeholders.
• A “strategic enabler” that focuses principally on
addressing the challenges that impact overall corporate
strategy and the achievement of business objectives.
• Aa continuous improvement process.

5. RISK APPETITE FRAMEWORK
Risk Appetite
Risk Bearing
Capacity
Risk Limits
Risk Profile

6. RISK CULTURE
• Consists of norms, attitudes and behaviour related to risk awareness, risk-taking
and risk management, and the controls that affect decisions on risks.
• Enables to do the right thing even in challenging circumstances.
• Risk Committees, Risk Owners
• Clear Policies and Procedures, Capital Planning
• Integrity and high Ethical standards
• Knowledge oriented organization - Ongoing Trainings, Updates
• Cooperation and Constructive dialogue (Open Communication)
• 3 Lines of Defence

7. ERM PROCESS & COMPONENTS

8. CREDIT RISK MANAGEMENT
• Default of the borrower or deterioration of Credit Quality
• Mandate, Credit Policy
• Credit Analytics, Machine Learning
• Credit Appraisal, Rating, Disbursal
• Monitoring and Controlling
• Provisioning, Capital Calculation
• Back Testing
• Stress Testing, Reverse Stress Testing

9. OPERATIONAL RISK MANAGEMENT
• The risk of loss resulting from inadequate or failed internal processes, people and
systems or from external events.
• Policy, Procedures
• New Product / Processes / Practices approvals
• Any deviations to existing practices
• AML, KYC & CFT
• Legal Risk, Compliance, Information Security
• Whistleblower matters
• Feedback through KRI, SAQ, RCSAs, Audit & Loss Events
• Capital Calculations – Scenario Analysis, LDA and RCSA

10. MARKET RISK MANAGEMENT
• Possibility of loss due to market fluctuations
• Interest Rate Risk
• Equity Risk
• Commodities Risk
• Exchange Rate Risk
• Risk mitigation techniques like MTM,
stop loss limits, notional limits, VaR limits
• Advanced Capital calculation
• Stress Testing methods

11. LIQUIDITY RISK MANAGEMENT
• Risk to meet short term financial needs
• Liquidity Coverage Ratio (LCR) and NSFR
• Asset Liability Management – buckets, rate shock analysis
• Fund Transfer Pricing
• Liquidity VaR

12. STRATEGIC RISK
• Risk that failed business decisions, or lack
thereof,
may pose to a company.
• Scenario Analysis

13. REPUTATIONAL RISK
• Refers to the potential for negative publicity,
public perception or uncontrollable events to have
an adverse impact on a company's reputation,
thereby affecting its revenue.
• Quantification
• Event based risks

14. ANY QUESTIONS?