In recent years, banks face challenges and became more competitive. Answer that challenges, bank must set up a good strategy and make sure every risk has to be managed. To ensure every activity that banks doing, regulatory makes a policy and procedure to be comply with.
Regulators are starting to shift their focus to ensuring financial institutions are also well prepared and are starting to consult with the industry on the best approaches.
Indonesian regulator aware of the increasing complexity of risk for banking business activities will increase the need for good corporate governance practices and the identification, measurement, monitoring and control of bank risks.
Asian Bank’s should:
- Improve the quality of risk management implementation to support the effectiveness of risk-based bank supervision framework
- The management of any functional activity of the bank shall be wherever possible integrated into an accurate and comprehensive system and risk management process
- In order to create risk management preconditions and infrastructure, the bank shall take preparatory steps for the implementation of risk management