What do you do if your decision-making in the banking sector is putting your financial institution at risk?

In my experience, if you are concerned that your decisions have been misinformed, it is a good time to reflect on the decisions you have made and why you believe they may have led to unnecessary risk. It is always good to have a sounding board, someone who is a peer in your company or mentor outside that you can bounce these thoughts of and get a fresh perspective. A more formal approach, if warranted, would be to conduct a risk assessment and identify the inherent risks linked with each decision, rate the risk and probability of occurrence, to give you a risk score to prioritize the risk, assess the possible controls that exist and if a residual risk remains you can ascertain the impact and action plan to mitigate.

My Opinion, I will make risk assessment to take bellow decision :- Avoid risks -Risk mitigation -Risk Transfer -Accept risk. Regards, Salih Elsheikh Risk Manager

Identifying & Assessing Risk: The First Line of Defense Red Flags & Root Causes: When risky decisions are suspected, conduct a comprehensive assessment to identify the specific choices and their potential impact on the bank's financial health. Data-Driven Approach: Analyze financial statements, consult stakeholders, and consider market trends to understand the true extent of the risk. By pinpointing the risky choices and their potential consequences, this initial assessment sets the stage for developing a risk mitigation plan to safeguard the bank's stability.

Expand Your Risk Management Network: Seek Expert Guidance: Don't hesitate to consult mentors, industry specialists, or experienced colleagues when risky decisions arise. Gain valuable insights and uncover potential blind spots through their unique perspectives. Collaboration is Key: Navigate financial risks more effectively by leveraging the collective knowledge and wisdom within your network. By seeking external expertise and fostering collaboration, you can gain a broader understanding of potential risks and make informed decisions that safeguard your bank's stability.

Strategic Rethink for a Secure Future: Scrutinize Your Assumptions: Re-evaluate the underlying principles guiding your decisions. Are they aligned with the current market realities? Embrace Change: Be open to adopting new strategies that better suit the evolving banking landscape. Consider portfolio diversification, risk tolerance adjustments, or a redefined target market. By reevaluating your strategic assumptions and embracing change, you can ensure your bank's future success and mitigate risks associated with past decisions.

Continuous Learning for Sound Decisions: Formal & Informal Education: Invest in your professional development through formal courses, banking seminars, industry podcasts, or webinars to broaden your financial knowledge and decision-making expertise. Stay Current with Best Practices: Actively seek out and integrate best practices in risk management and financial decision-making to consistently improve your abilities. By committing to lifelong learning and staying updated on best practices, you can ensure your decision-making skills remain sharp, mitigating risks and propelling your bank towards a secure future.

Building a Robust Decision-Making Framework: Clear Policies & Procedures: Establish well-defined policies and procedures for decision-making processes. Checks & Balances: Integrate a system of checks and balances, requiring multiple approval levels for significant decisions. Risk Management Alignment: Ensure decisions adhere to the bank's risk management framework. By implementing these controls, you can safeguard against risky choices, promote accountability, and make informed decisions that align with the bank's overall risk tolerance.