Risk Management in the Asian Banking Sector

“What is the best strategy for the implementation of Enterprise Risk Management in the banking sector of the highly expansive but volatile Asian economy?”

I chose to do an in-depth study of this area of risk management because as I am Australian, it is extremely important for me to start to fully understand the workings of our closest economic partner and the future of our economy which is driven by the expansive growth that is rolling through Asia.
I was also intrigued into the steps needed to fully adopt a risk management system in an entity.
It should be noted that the focus of this paper is on the developing region of South-East Asia and less on the more developed parts of Asia including China and Korea.

Matthew Dichiera
11167674

Contents

1 – Introduction
2 – 1997 Asian Financial Crisis and effect on vision of risk management
3 – Overview of risks faced by banks in the developing Asian region
4 – Importance of Enterprise risk management (ERM)
5 – Strategies of implementing ERM and the challenges associated.
6 – Conclusion
7 – References

Introduction
The Asian economy is a vehicle of highly expansive growth and even higher volatility, it is an area of the economic world which must be treated with much anticipation and be viewed with excitement but also must be monitored and watched extremely carefully as was shown by the infamous Asian financial crisis of 1997.
Opportunities for growth are high, which is shown by the high average growth rates of most countries in the area and future prospects for this area are also extremely bright. However, on the other side of the coin this high growth is matched with equally high volatility in financial markets as these markets are currently being faced with extreme structural changes with respect to privatisation, consolidation and regulation.
Risk