Covenant University Hosts Treasury Risk Management Workshop
As the global economy gradually recovers from the 2008/2009 global financial crisis and economic recession, the Department of Banking and Finance of Covenant University has hosted a two-day workshop targeted at helping bolster the capacities of corporate organizations to manage investment and portfolio risk.
In her welcome address, the Head, Department of Banking and Finance, Dr. Abiola Babajide, said the workshop was one that is long overdue considering the aftermath of the global economic recession and the impact on financial and mortgage institutions across the world.
Dr. Babajide while alluding to a position averred by the immediate past Governor of the Central Bank of Nigeria, His Royal Highness Sanusi Lamido Sanusi, said that among the factors that led to the creation of an extremely fragile financial system in Nigeria is the macro-economic instability caused by large and sudden capital inflows, along with others that almost brought the entire Nigerian financial system to the brink of collapse.
She noted that in the 21st century, especially today’s global market, the treasury management function has become broader in scope, involving managing an increasingly broad range of risks apart from financial and operational, which confront any organization aspiring for global relevance in today’s complex and volatile environment.
Dr. Babajide stated that the level of importance organizations are placing on effective measurement and management of risk is an indication of the increase risk levels they have to contend with in the present business environment as it relates with the larger global business environment.
She posited that the workshop would help review best practices commonly used by today’s financial institutions and corporations to manage their risk, while it would also help participants to highlight how market risks are measured, reported and controlled in today’s business circles.
The Chairman of the Organizing Committee, Dr. Ochei Ikpefan, in the opening session, said the aim of the workshop was to help treasurers redefine their roles and skills in risk management, while also building their capacities to help their clients steer off the path of bad risk while managing their portfolios.
Highlighting the various risks that organizations and individuals are open to in the contemporary business world, Dr. Ikpefan said he expects the workshop participants to draw lessons from the experiences of the different facilitators and build the necessary knowledge base to tackle the challenges of treasury risk management.
Declaring the conference open, the Dean, College of Development Studies, Professor Isaiah Olurinola, who represented the Vice-Chancellor, Covenant University, Professor Charles Ayo, said the evolution of banking and the risk involved in holding in trust the resources of customers have made it expedient for practitioners to see treasury management as a serious business.
According to him, “It is not just enough to give out money, the money must return at a profit so that the bank or financial institution can continue in business.
He noted that there are a lot of things that can go wrong along the line of business, be it political, climatic, social or economical that would affect the organizations’ inability to recover what they have invested in certain areas of the economy and managing the treasury and risk attached to it becomes very critical and important.
He appreciated the quality of the resource persons on ground, who, according to him, are seasoned practitioners in the areas of treasury risk management who are expected to unveil and present practical realities of risk management in business.
Among the issues treated at the two-day workshop were foundational issues in treasury management, recent innovations and ICT influence in the business of treasury management, cashless banking and management in the economy: the challenges and prospects, practical challenges of managing treasury in rural and urban branches, risk in treasury management and practical sessions among others.
The Keynote Speaker and the 1st Vice-President, Chartered Institute of Bankers of Nigeria (CIBN), Dr. Olusegun Ajibola, at the 2-day workshop presented three incisive papers, which include ‘Managing Risk in the Current Dispensation with Fiscal and Monetary Policies,’ ‘Fundamental Issues in Bank’s Treasury Management,’ and ‘Cashless Banking and Management of Treasury in the Economy.”