Professional in demand

Risk in its various forms - whether in business, banking or investing - is a fact of life. However, following the widespread impact of the global economic financial crisis and controversy over the selling of Lehman Brothers minibonds in Hong Kong, risk management has become a major focus for the banking industry.

Recruitment firms report that across the banking and finance sector, experienced professionals who can identify and understand the circumstances that lead to risk, and formulate solutions to mitigate risk are in hot demand.

Speaking at a 'Basel III: New Rules for Bankers' seminar, co-organised by Classified Post and Kornerstone, Peter Lam, director, risk and compliance services, KPMG, said new international banking regulations are part of continuing efforts to address bank supervisory issues and enhance banking practices.

He said Basel III regulations should reduce banks' incentive to take excessive risks, lower the likelihood and severity of future crises, and enable banks to withstand, without government financial intervention, the type of stresses associated with the recent financial crisis.

Lam said that to meet Basel III compliance, banks must invest in risk reporting systems, information technology (IT) infrastructure and human resources to build up a sound risk management platform.

'Banks need to strengthen the preparation of a plan to incorporate all risks. This requires across-the-bank co-operation involving senior management, finance, treasury, business, and risk departments,' he said.