Md Monirul Islam
When interest rates change, the market value of a bank’s assets and liabilities changes too — but not always by the same amount. Duration Gap Analysis helps measure this difference and understand the risk it creates for the bank’s net…
Md Monirul Islam
Bangladesh Bank guidelines require banks to conduct stress tests on five specific risk areas, plus a combined shock assessment that aggregates all of them together. Credit Risk: Five shocking events are tested: (i) Direct increase in NPLs: 3%, 9%, and…
Md Monirul Islam
Stress testing is a simulation technique used to determine the reactions of different financial institutions under a set of exceptional, but plausible assumptions, through a series of tests. At the institutional level, stress testing provides a way to quantify the…
Md Monirul Islam
Implementing ERM is not something you do once and forget. It is an ongoing process. The 10 steps are grouped into 4 phases. Each phase builds on the previous one. Phase 1: Planning and Designing Step 1 — Identify Intended…
Md Monirul Islam
The COSO ERM framework is structured around 8 components. These components apply across all four business objectives and at every level of the organization. Internal Environment: This is the foundation. It establishes the entity’s risk culture — the risk management…
Md Monirul Islam
Yes, this statement is fully justified. The Audit Committee and Internal Auditors serve as a direct extension of the Board’s risk oversight function. Role of the Audit Committee While the Board of Directors is the primary risk manager, the Audit…