Heng Swee Keat: Advances in risk management – theory and practice Opening address by Mr Heng Swee Keat, Managing Director of the Monetary Authority of Singapore, at the Symposium to mark the opening of RMI’s new facilities, Singapore, 2 October 2009. *  *  *  Prof Tan Chorh Chuan Prof Tan Eng Chye Prof Duan Jin-Chuan Distinguished speakers, guests, ladies and gentlemen Good morning Introduction It gives me great pleasure to join you today at the symposium which marks the opening of Risk Management Institute’s (RMI) new facilities. RMI is Singapore’s first full-fledged research centre dedicated to risk management. RMI was set up three years ago. The timing could not have been more appropriate. Given the spotlight in the current financial crisis on risk management, the shift of economic weight to Asia, and NUS’ standing as a global university in the heart of Asia, RMI has a major opportunity to play a prominent role in research and education on this critical topic. Emerging from the current crisis In recent weeks, confidence has returned to financial markets. More recent forecasts for global economic growth have been revised upwards, including that for Asia. There is palpable relief that the global economy has avoided the abyss. But some players seem to have forgotten that we have just gone through the worst financial crisis since the post-war period. The clean-up of the wreckages will take time.
Let me suggest three broad areas. First, as researchers are removed from the fray of day-to-day action, you can step back and ask fundamental questions about risk management practices, identify gaps, and facilitate innovation in risk management techniques. I am pleased to learn about your credit rating project, which aims to provide rigour and transparency to the financial assessment of regional corporates. The value of such work is that it is grounded on sound empirical and theoretical work, with a clear focus on solving practical, impactful problems. In the same vein, RMI’s regular workshops and lecture series serve as useful platforms to present findings to the industry, and to encourage two-way discussions. MAS fully supports RMI’s initiatives to deepen its collaboration with the industry. Second, as a repository of knowledge on risk management, RMI plays an important role in education. RMI has been appointed as the lead provider on risk management under the  BIS Review 121/2009  3  Financial Industry Competency Standards (FICS). You have launched 50 accredited programmes across seven Risk Management job families over the past year. To support the role of Boards and senior management in risk management, I hope that RMI would consider appropriate executive programmes for Board members and senior management of financial institutions. I believe RMI can make an impact in enhancing the knowledge and capability of practitioners. Finally, I hope RMI can provide a focal point to bring in global thought leaders and practitioners on risk management, through your flagship RMI Annual Conference.