Talking Risk

That means ensuring that the on-site and off-site surveillance were carried out effectively, the relevant authorities were advised of any areas of concern and ECCB did the necessary follow-up for corrective action.

Ahhhh …. now that’s where it gets interesting. The ECCB cannot be held responsible for the decisions taken by a commercial bank. However, it must ensure that it carried out its duties and the necessary steps were taken to address any issues that were identified.

In other words, we carry the horse to the water to drink but we can’t be blamed if the horse decides not to drink the water, even if we coax it, and then fall down because it’s dehydrated.

Yes, that’s the gist of what we’re saying.

Don’t miss the very important point though - we have to stay on top of what we have control over. For example, we have to make sure we can show that we took the horse to the water.

Ok. On another note, in Banking Dept. the other day they were saying something about a moderate target risk score. How is that? Everything ain’t supposed to be low risk?

That may be so, but some risks can’t be low by the very nature of what is involved; so being moderate is not necessarily a bad thing.

For real, nothing moderate about the big money and ‘truckload’ of transactions they dealing with every day.

Retire? And still fighting up Machel and Buju! You really need to stay in your lane!

Explain that some more please. I soon time to retire; I have to make sure my pension secure.

I’m as young as I feel! And since all you know about is Burning Flames, maybe you need to retire!

Let us look at the management of the investment portfolios and the risk that the interest rate may fall below the Bank’s tolerance.

Well, if the interest rates go too low, then that could mean losses for the Bank, which would have a high impact. (3)

When you say loss, you mean I could lose my pension?