You're torn between business growth and risk mitigation. How do you decide which strategy to prioritize?

In my view, the best strategy is to adopt a balanced approach. For instance, maintaining a stock of high-quality liquid assets (HQLA) in proportion to the level of deposits is crucial. As the balance sheet grows with increased deposits, the stock of HQLA must also rise to ensure sufficient liquidity in the event of a run on the bank’s deposits.

Well, risk is ubiquitous, we may not always have to mitigate all risks, some of them we need to take (strategically that is). But as good practice you need to look at the firm's financial health, evaluate the amount of risk the firm can take, and try to assess the trade-off (what would happen if I do/do not pursue the growth initiatives). The overall decision may depend on your risk appetite, the nature of the business and the capacity to deal with the ever evolving nature of risks.

In my experience, understanding that growth and risk management can go hand-in-hand is vital for balanced decision-making. This approach allows companies to grow confidently without ignoring potential pitfalls.

We balance growth and risk by conducting a thorough analysis of potential opportunities and associated risks. Evaluate the potential returns of business growth against the likelihood and impact of risks. By aligning our decisions with strategic objectives and risk tolerance levels, we prioritize initiatives that offer sustainable growth while implementing measures to mitigate significant risks. This approach ensures we pursue growth responsibly, safeguarding the organization's long-term stability.

No puedes ingresar a un nuevo mercado o lanzar un nuevo producto sin antes realizar un análisis de riesgos, porque necesitas conocer a qué te enfrentas en ese nuevo mercado, como le ha ido a la competencia con ese nuevo mercado, que otros factores influyen para lanzar ese nuevo producto, todo esto tiene que ser analizado por el departamento de gestión de riesgos para que puedan presentar un informe sobre los riesgos, la forma de mitigarlos, y sus consecuencias. Con dicho informe se toman las decisiones no es una decisión que solo debe tomarse en base a una proyección de ingresos.

Existen varias opciones a la hora de mitigar los riesgos a continuación algunas ideas: Diversificar: en Latinoamérica decimos “no poner los huevos en una misma canasta”, es decir, no le apuestes solo a esa línea de negocio, a ese tipo productos etc. Seguros: adquiere seguros que te protegen en caso de que los riesgos se materialicen, así tendrás un respaldo económico Tecnología: adapta tecnologías que te ayuden a disminuir el riesgo operativo Plan de contingencia: desarrolla planes de contingencia para que estés preparado por si ocurre algún evento inesperado.