The Importance of Risk Management and Finance in Banking

On Nov.11 afternoon, the forth Citi-Fudan University Banking Course started in Room 204, Starr Building as usual. Mr. William To (The Chief Risk Officer of Citi China) and Mr. Francesco Sirna (The Chief Finance Officer of Citi China) brought us 2 exciting lectures.

The topic of Mr. William To brought us is The importance of Risk Management.

　　

The main idea of this part includes 4 aspects. They are the importance of risk management in a bank, risk types and risk management structure, credit risk management process and the risk-return equation. First of all, Mr. To introduced the particularity of banking industry, and the difference of risk from other companies. Combined with the types of risk and risk management structure, Mr. To set the example of credit risk management process, analyzed how banking define and evaluate risk. Target market definition, credit initiation, regular review&control, portfolio management and remedial management are the key points during the procedure. At the end of this topic, Mr. To pointed out the purpose of risk management is to achieve the risk-return equation. The critical components are familiar with risk culture, well define policies, procedures, responsibilities, incentive system and so on. Audiences said they had learned a lot from this topic.


In the second part, Mr. Francesco Sirna did a speech of Finance in Banking.

　　　　　　　

As the CFO Citi China, Mr. Sirna introduced the responsibility of CFO and banking financial. He vividly described the responsibility of Citi CFO as Business Advisor, Historian, Policeman, Prophet and Developer. After that Mr. Sirna cited some instances to support his idea of different roles in the banking financial chain, and the importance of strict inside audit and inside control. Meanwhile he presented the knowledge related to finance function through two aspects, strengthen control environment and drive business results. He emphasized the important information in three financial reports a CFO should focus on, and how these information show the performance of a bank. At the end of the speech, Mr. Sirna pointed out that a qualified professional should have three qualities, Solid Financial Qualifications, Acute Business Sense and Sound Judgment.

The lecture lasted for three hours and completed successfully. Many attendees also showed their great interests and professional qualities in financial industry.



Written by: 周闽 Fudan 2011 Asia MBA
Fudan MBA Program
Nov.9^th, 2011