Q1 – Kanwardeep, can you please tell the Risk Insights readers about yourself and your professional experiences?
I have over twenty years’ experience in thinking about risk. I started my professional career in financial regulation, which grounded me in the positives that regulation is trying to achieve. I moved into risk management in investment banking, working in market risk, credit risk, model validation and valuation risk. From there I moved to the buy-side, at a global re-insurer, giving me perspective of both asset management, group credit and reinsurance risk management. Bank of America Merrill Lynch is by far the largest company I’ve worked for and my role as deputy CRO for EMEA and regional executive for the Global Markets Risk Management team utilises aspects from all parts of my prior experience.
Q2 – We are looking forward to your Keynote Panel Discussion at Risk EMEA 2016 where you will be discussing the evolving regulatory landscape. Why do you feel this is a key talking point at the Summit?
While it is important for the industry to stay on top of evolving and new regulations, “how” we run our business is emerging as a key focus for regulators. We must follow the rules and regulations that govern us, but we also need to make sure that our people demonstrate conduct that aligns with our values and focus on our customers.
Q3 – How do you see the pace and scale of regulatory change affecting the role of the risk professional?
Risk managers need to work harder than ever to stay abreast of changing rules and regulations while maintaining a strong business understanding. At the heart of the risk manager’s job, we need to remember that our target is to absorb regulatory requirements into the risk management needs of our institution. If we succumb to thinking a risk manager serves only the regulators, we will not be adding the value that we are capable of.
Q4 – Ahead of the Keynote Wrap Up Panel Discussion, which will be concluding the Summit, can you please tell us why it is important to align departments and regulatory requirements?
Risk managers must have a holistic view of risks, beyond their particular specialisations. This requires bringing different risk and regulatory disciplines in close contact, for knowledge-sharing, effective challenge and debate and, ultimately, operational efficiency. A silo’d risk management set-up cannot foresee all possible threats that a firm is exposed to.
Q5 – How do you see the role of the chief risk officer changing over the next 6-12 months?
In the past, CROs may have risen to the role by possessing expertise in one particular discipline, typically either credit or market risk. The CRO of the future needs to have good multi-discipline knowledge across many risk types, including liquidity risk, operational risk etc. And incumbent CROs should be nurturing their key talent to provide this cross-functional training.