Risk management - challenging but satisfying

What does working in the risk management sector, especially for a bank, entail? United Overseas Bank (Malaysia) Bhd (UOB) Senior Vice President and Head of Risk Management Division, Alex Por, tells us more about his work and what it takes for aspiring students to enter the sector.

Risk management in a bank is about managing the risk exposure of the bank. Hence it is important that there is proper and adequate governance in place and that there are appropriate control measures put in place to monitor, measure and manage those risks.

'There are several types of risks to be managed and some of the key risks are credit risk, balance sheet risk, liquidity risk, market risk and operational risk. It is imperative that these risks are managed properly as they have a significant impact on the operations of the Bank and ultimately its profitability and stability,' he said.

Why risk management?

Alex Por, who has an accountancy background, has been in risk management for more than 16 years. He got involved with risk management when he was asked to spearhead the assets and liabilities Risk Management Division with a local bank in the late 1980s. He found the risk management field to be very interesting, to the extent that it resulted in something of a 'career change' for him.

Having been in the business for so long, what keeps this Senior Vice President motivated about his work? 'Risk management is exciting,' he said. 'It is constantly evolving and it is indeed challenging. You need to keep abreast of new developments, concepts, methodology and it certainly keeps the adrenaline pumping!' he added.

The most satisfactory part of the job

Alex Por said the best bit of his work is the feeling he gets when he manages to convince his internal clients - such as the management, business, or support units of the Bank - that the rules set by his department are meaningful, relevant as well as appropriate and that they are embraced positively.

'That is the most satisfying part of the job!' he shared.

The main challenge

In line with the bank's objective to keep moving ahead, Alex Por said the main challenge for risk management is to be able to identify the risks involved in each business and be able to measure, monitor and manage the risk collectively. Again, his department has to reaffirm to the rest of the Bank that risk management is facilitating business and not the other way around!

Characteristics and qualifications needed

Alex Por said candidates intending to join his Risk Management Division would need to possess good analytical and communication skills coupled with a good learning attitude.

He added: 'You need to be prepared to be challenged. Our candidates need to be able to articulate their idea and make it relevant to the business environment.'

While a degree in any related discipline such as statistics, accounting, engineering or economics is a plus, Alex Por said UOB would also consider candidates outside of this grouping.

There is a steep learning curve required in risk management and one must have the attitude and aptitude to learn new concepts, methodology and principles. He said staff in the division need to have a hands-on attitude and make a strong effort to understand the underlying principles involved in the various risk management areas.

What puts UOB ahead in risk management

'We have strong guidance and direction from our parent bank in Singapore. We see ourselves as a strong regional bank presently. In terms of risk management, we believe we make a conscious effort to adopt best practices and not just mere compliance to regulatory rules,' Alex Por shared.

Alex Por's colleague, Senior Vice President and Head of the Human Resources Division Lee Voon Seng added that in UOB, the various risks are not managed separately on their own but in an integrated manner from the business point of view.

Lee said: 'We also believe our employees have high "market value" in view of their knowledge and skills acquired from our comprehensive training programmes. At UOB, you are given the space to grow. We also move our new employees to several departments to facilitate their learning, so when they decide to return to risk management, they would have already built a better understanding of the business and can therefore add value to the way risk is being managed.'

© GTI Specialist Publishers. Reproduced with permission.