Risk management has become a top priority for bank boards in the wake of the ongoing financial crisis, said experts at a risk seminar in Bahrain.

Most world markets and sectors continue to be adversely impacted, including the Islamic finance sector, which is facing regulatory and practice-related reforms.

Around 40 members and students of the Chartered Institute for Securities and Investment in Bahrain, many of whom have completed the Central Bank of Bahrain mandatory qualification entitled Financial Advice Programme, attended a risk seminar held jointly with the Bahrain Institute of Banking and Finance (BIBF).

BIBF director Garry Muriwai welcomed delegates, stressing the importance of continuing learning and development in the finance industry.

United Gulf Bank senior vice-president and chief compliance officer Deepa Chandrasekhar and Deloitte Middle East Financial Knowledge Centre director Dr Hatim El Tahir addressed the event.

Chandrasekhar stressed the role of information in risk management, and at how professionals continue to help develop effective systems for implementing a risk framework.

"The financial crisis reiterated the importance of incorporating strong risk management and governance principles," she said.

"The onus is on risk and compliance personnel in financial institutions to identify, assess and mitigate emerging risks proactively," she added.

"Greater pressure has been placed on financial institutions offering Islamic financial services to develop effective risk intelligence solutions," said Dr El Tahir.

"A recent report by Deloitte showed that although the practice of enterprise risk management is relatively new in the Islamic finance sector, 79 per cent of the institutions that took part in a survey by the firm had established a risk department in the last five years." – TradeArabia News Service