Fintech
Risk Management Insights by Khurram Khan of Boubyan Bank
At FinTech LIVE Dubai 2024, the focus on risk management has never been more relevant. Khurram Khan, Assistant General Manager and Head of Non-Financial Risk at Boubyan Bank, shared his extensive experience and insights into the landscape of risk management in the financial sector.
Boubyan Bank, a leading financial institution in Kuwait, has been at the forefront of integrating comprehensive risk management strategies. As Khan explains, “Risk management and security are kind of at the center of everything. They cut across all of these areas.” His 20-year career spans technology, security and financial services, providing a rich background for his current role overseeing non-financial risk at Boubyan Bank.
Khan notes a significant shift in the types of risks that financial institutions face today. Traditionally, the focus has been on financial risks such as credit exposure and market risk. However, in recent years, there has been an increase in non-financial risks.
“Technology can fail because everything depends on technology. There are increasing cyber attacks. There are regulatory requirements around data privacy and data protection,” Khan continues, highlighting the complexities brought on by the digital age.
One of the key strategies adopted by Boubyan Bank is the integration and consolidation of risk management functions across the entire organization.
“We look at incidents that happen or risks that arise; they might superficially appear to be a technology incident or a business process issue, but because we work cross-functionally and are all part of a group, things can then spill over into other areas,” Khan notes.
This holistic approach ensures that risks are not only identified, but also addressed to prevent their recurrence.
Khan also highlights the importance of effective communication and processes within the risk management framework: “You can buy the best technology in the world, but if you don’t use it effectively, if you don’t use processes and internal communications effectively, things can fail.” This highlights the need for a strong governance structure that ensures all stakeholders are engaged and informed.
A noteworthy initiative at Boubyan Bank is the implementation of a risk champions framework. This approach assigns specific individuals within business units to serve as points of contact for risk-related activities. These “risk champions” are responsible for reporting incidents and working with the risk management team to resolve them. Khan explains, “We saw success in the first year. We actually demonstrated results and were able to materially reduce projected losses by over 40 percent.”
Finding a balance between risk management, business growth and customer experience is another key aspect that Khan addresses. Effective risk management processes should not hinder business operations, but rather enable them.
“Our goal is to help companies win and achieve their goals,” says Khan.
By streamlining its risk assessment processes, Boubyan Bank has reduced the time required for risk assessments from several months to just two weeks, demonstrating a significant improvement in efficiency.
Looking ahead, Khan identifies emerging challenges in risk management, including sustainability, artificial intelligence (AI), and data privacy: “We’re developing an AI strategy and framework right now. It’s a multi-functional strategy, and you can’t ignore the safety, risk, and ethics side,” he says. This proactive approach ensures that new technologies are thoughtfully and securely integrated into the bank’s operations.
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