1	Risk Management Department Abdullah Qayumi Da Afghanistan Bank Risk Management Department
2	Outline Da Afghanistan Bank Risk Management Department 1. Overview 2. Risk Management 3. Risk Management Framework 4. Risk Management of DAB 5. Approved Structure of RMD 6. Technical Assistance
3	Overview Several global factors are encouraging central banks to strengthen their practices in the areas of risk management, transparency and corporate governance. These include: 1. Leading by example 2. Central Bank Independence 3. Emphasis on central bank best practice These factors have provided momentum for central banks to improve their operations in all areas. Da Afghanistan Bank Risk Management Department
4	Risk Management Risk Management is a discipline at the core of every financial institution and encompasses all the activities that affect its risk profile. It involves identification, measurement, monitoring and controlling risks to ensure that: a) The individuals who take or manage risks clearly understand it. b) The organization’s Risk exposure is within the limits. c) Risk taking decisions are in line with the business strategy and objectives. d) The expected payoffs compensate for the risks taken. e) Risk taking decisions are explicit and clear. Da Afghanistan Bank Risk Management Department
5	Risk Management Framework An effective risk management framework includes. a) Clearly defined risk management policies and procedures covering risk identification, acceptance, measurement, monitoring, reporting and control. b) A well constituted organizational structure defining clearly roles and responsibilities. c) There should be an effective management information system that ensures flow of information from operational level to top management and a system to address any exceptions observed. d) The framework should have a mechanism to ensure an ongoing review of systems, policies and procedures for risk management and procedure to adopt changes. Da Afghanistan Bank Risk Management Department
6	Risk Management Department Risk Management Department of Da Afghanistan Bank (DAB) will be responsible ; - Developing and maintaining the risk management framework. It oversees the implementation of the framework, and ensures that risk management processes are appropriately carried out. Da Afghanistan Bank Risk Management Department
7	Technical Assistance Da Afghanistan Bank has recently set up Risk Management Department. Following are our needs to improve the risk Mgt Framework. Therefore the department needs: Qualified & well experienced advisor Intensive training programs in and out of the country. Study visit to other regional central banks, i.e. SBP, RBI, BNM, Turkish Central Bank, etc. Da Afghanistan Bank Risk Management Department
8	Structure of RMD Director General Advisor Admin Asst. Deputy Director General Deputy Director General (Financial Risk Division) (Non-Financial Risk Division) Portfolio & Interest HR & Banking Operations Risk Section Director Rate Risk Section Director Liquidity & Foreign Exchange Rate IT System, Services & Procurement Risk Section Director Risk Sector Director 4 Managers 4 Managers 4 officers 4 officers Da Afghanistan Bank Risk Management Department
9	"Da Afghanistan Bank" Da Afghanistan Bank Risk Management Department