Governance and risk management has become one of the main concerns of companies and banks in the financial sector. This is because money-related decisions are made with the help of risk information gathered by risk professionals. Therefore, effective risk management can help such organizations get more insight and confidence to take advantage of numerous opportunities which may have been rejected by others due to their risks. For this reason, financial organizations hire Basel II governance and risk managers.
Basel II is the second set of recommendations on banking laws and best practices. Set by the Basel Committee on Banking Supervision, these recommendations help create an international standard which can help regulators formulate just how much capital banks should save in order to avoid falling in a vortex of financial and operational risks.
More on Basel II’s Best Practices Available Here
What a Basel II Governance and Risk Manager Does
A Basel II governance and risk manager will be in charge of implementing the best practices set by the international standard. This means that he or she will be:
To become a Basel II governance and risk manager, one must study Basel II and comprehend its recommendations. In addition, since the professional will be put in charge of capital, he or she should be well aware of the basics of capital requirements. Employers will also look for candidates who have good academics and excellent communication skills. Thus, those interested in enforcing the best practices in banks and financial organizations should consider becoming Basel II governance and risk managers.