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Webinar on Enterprise Risk and Corporate Governance

Nepal Bankers’ Association in collaboration with Vinco Consultancy jointly organized a webinar on “Enterprise Risk and Corporate Governance”.  The primary aim of this webinar was to discuss and exchange insights regarding the existing challenges and strategies for addressing Enterprise Risk and Corporate Governance.

Vinco Consultancy and Advisory Service, Founder and Chief Executive, Mr. Lakshman Pandey extended a warm welcome to all participants. He highlighted the objectives of the program, emphasizing utmost importance of Enterprise Risk Management for organizations in today’s dynamic and unpredictable business environment.

NBA Executive Director, Mr. Anil Sharma delivered the introductory remarks and set the context. Mr. Sharma highlighted that Central Bank of Nepal has put considerable efforts to ensure that banks comply with risk-related measures and maintain good governance practices. Nevertheless, he acknowledged that there is still much work to be done in addressing these issues, emphasizing the need for collective efforts from all stakeholders.

Founder and CEO, BeyondrisX, Mr. Jitendra (Jitu) Arora said that when managed effectively, Enterprise Risk can provide a competitive advantage to organizations, since it is the heart of Corporate Governance. Mr. Arora pointed out that in the post-Covid landscape, the volatility of risk has significantly risen, particularly from the perspective of banks. Furthermore, he shared the idea that establishing a culture that incentivizes employees can contribute to the promotion of Corporate Governance within an organization.

Former NBA President, Mr. Bhuvan Dahal emphasized the crucial roles of “3 C’s” – Chairman, Chief Executive Officer (CEO) and Chief Risk Officer (CRO) – in effectively addressing Enterprise Risk and Corporate Governance concerns. He further said that there is always the pressure to generate profit from shareholder’s side to the banks, Chief Executives must not compromise on organizational core values and principles. Likewise, communicating and reporting pattern amongst different levels of management must be clearly defined by the organization.

Mr. Priyadarshini Dutta, Chief Risk Officer, Stashfin expressed the view that strengthening Corporate Governance within an organization requires active involvement from top-level management. He elaborated on the top risks currently faced by banks and financial institutions, which include Cyber Security Risk, Climate Risk and Strategic Risk. Furthermore, he also emphasized the importance of establishing effective communication and coordination among the first, second and third-line teams within banks. He pointed out that while Artificial Intelligence (AI) presents opportunities, it also poses significant challenges for banks. As a result, he stressed the need for AI to be guided by regulatory authorities to ensure responsible and secure implementation.

The webinar was attended by more than 180 participants, including Chief Risk Officers, Chief Compliance Officers, Chief of Operations, Head of Legal Department, and Province Heads from member banks.