October 19, 2021

RIMAN urges banks to increase investment in technology

Risk Managers Association of Nigeria has urged banks to increase investment in risk assessment technology...

Risk Managers Association of Nigeria has urged banks to increase investment in risk assessment technology in order to mitigate the increased risks that come with digitisation in the banking sector.

The President of RIMAN, Mr Magnus Nnoka, said this at the 20th annual international conference of the association, where stakeholders gathered to deliberate on risk management in a digital era.

Nnoka said, “The rise in digital assets and channels consequently lead to emerging and evolving risk types, therefore, we are seeing increasing digitisation of risk.

“Even as organisations seek increasing digitisation, we can readily identify a few of the drawbacks on this journey; these include legacy information asset, organisational culture, data quality, dearth of requisite talent and complexity of organisational structure.”

He added that in the digital era, risk management professionals would be required to review and reshape their mandate and roles, develop digitally-driven mindset and capacity to provide faster, more forward-looking, and deeper insights in driving the new working environment.

Nnoka said, “Furthermore, concerns have been raised, not by a few, that technological innovation or digitalisation specifically in the banking sector appears to be concentrated mostly on customer-facing journeys such as online banking and marketing and the activities that support these journeys such as customer onboarding, customer servicing and resolution of complaints.

“It is my submission that managing risk in a digital era should be supported by adequate and appropriate investment in digitalisation of risk management. Digital risk transformations should be pursued intentionally by organisations. It will be increasingly challenging for risk management approach to stay analogue while customer-facing activities and operations race ahead into digital.”

The Managing Director, First Bank of Nigeria Limited, Mr Adesola Adeduntan, in his keynote address, said risk managers should be well equipped to better manage emerging risks in a digital world.

Adeduntan, who was represented by the Group Executive Treasury and International Banking Group of FirstBank, Mr Ini Ebong, said, “Given that digital technology has become an integral part of most businesses, especially financial services businesses, risk leaders will need to be well equipped to better manage the emerging risks in the digital era.

“Risk leaders are expected to provide the required support that will enable their organisations to remain resilient amidst uncertainties and the growing complexities in the operating and business environments.”

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