Asset Management Corporation of Nigeria (AMCON) has stressed the need for consistent collaboration with Risk Management Association of Nigeria (RIMAN) in promoting professional practice and capacity building in the country. The Managing Director and Chief Executive Officer of AMCON, Ahmed Kuru, made the observation during a stakeholder’s interaction at the bad bank’s office, in Lagos, recently.
According to him, the activities of RIMAN are essential to the operations of AMCON, especially in the areas of credit risks. Restating the importance of risk management, he noted that out of 14,000 bad credits that were transferred to AMCON at inception, about 70 per cent went bad at the various banks due to lack of adherence to laid down principles of credit process and policies, which was a reflection of poor risk management.
He added that the remaining 30 per cent could be related to other reasons like macroeconomic issues and environmental factors among others.Kuru also stated that the country as a whole has lost more money in bad credits than people stealing money, while recommending an adoption of a stick and carrot approach in dealing with such issues.He emphasised that it is necessary to re-visit the failed bank Act as part of instilling consequence management practices.
“It is imperative to do this because abuse of internal credit policies for self-interest is indeed another form of corruption and must be treated as such.“Credit policy documents must not just be seen as a routine document for compliance purposes only, but must be seen for what it truly is,” he said.
The President of RIMAN, Magnus Nnoka, pointed out that RIMAN, as the umbrella body of risk management professionals in Nigeria, has over the years collaborated with institutions like CBN and NDIC.
He assured that the association will, in the same way, collaborate with AMCON to enthrone strong risk culture and corporate governance in both private and public institutions.
Nnoka explained that collaboration with AMCON is desirable to enable the two bodies work together in promoting risk management advocacy, capacity building and best practice risk management in the country required to stem events that led to creation of AMCON about a decade ago.
According to him, with the commencement of Certified Risk Manager (CRM) professional certification programme by RIMAN in collaboration with the Chartered Institute of Bankers of Nigeria (CIBN), RIMAN was poised to take risk management capacity building to the next level. He pointed out that with the establishment of RIMAN Risk Management Institute and the introduction of PGD programme in Risk Management in partnership with UNILAG, RIMAN is well positioned to achieve much more.
Nnoka urged AMCON to join RIMAN’s Non-Performing Loans (NPL) Work Group set up by RIMAN towards strengthening laws relating to credit administration, risk management and debt recovery within the Nigeria business environment.