The Association of Enterprise Risk Management Professionals (AERMP) has inaugurated Basel Accord Day and Global Financial Regulations Day in Nigeria to promote financial stability and sound banking practices.
The virtual event, held in Lagos, highlighted the importance of the Basel Accords, a set of global banking supervision standards aimed at strengthening risk management, transparency, and resilience in the financial sector.
During the conference, bankers, policymakers, financial regulators, academia, risk officers, analysts, enterprise risk professionals, fintechs, and other attendees advocated the adoption of the Basel Accord for financial stability.
The experts praised AERMP for the inauguration of Basel Accord Day, which was part of activities to mark the also newly inaugurated Global Financial Regulations Week (FINREG) by the association.
The conference aimed to sensitise bankers and other financial services sector stakeholders on the Basel Accord and how it shapes the economy of commercial institutions and the nation.
AERMP President, Mrs Taiwo Ige, said the theme: “Imagine a Financial World Without the Basel Accord” was apt to inspire experts to explore, interrogate, and reimagine the foundations of global financial regulations.
Ige, who gave a brief history on the birth of the Basel Accords, beginning with Basel I in 1988, through Basel II and the much more refined Basel III and IV, added that the two provided upgraded guidelines as lifelines for global financial stability.
“They have helped institutions remain solvent, instilled discipline in capital allocation, promoted transparency, and, in many cases, shielded entire economies from collapse,” she said.
Ige urged participants to proffer solutions to strengthening risk culture in Nigeria and Africa in a constantly shifting risk landscape.
She noted that the AERMP would continue to take bold steps in advancing the frontiers of enterprise risk management in the nation.
Mr Olayinka Odutola, Director General/Chief Executive Officer, AERMP, said the association was the first globally to inaugurate and celebrate a Basel Accord Day as well as a Global Financial Regulations Week.
He said the ceremonies were important because regulators in the financial sector were unsung heroes who should be celebrated for their prominent roles.
Odutola said people need to know more about regulators; though not perfect, their absence could destroy banking institutions and the economy of countries.
He said the conference was about learning to understand the principles of the Basel Accord while explaining the implications of not having it.
Dr Blaise Ijebor, the Director, Risk Management, Central Bank of Nigeria, delivering a keynote, said the Basel Accord was instituted to restore confidence after shocks that collapsed some prominent banks in Europe.
Blaise, a chartered risk management expert, said the Basel Accord had introduced efficiency into transborder transactions and other national banking practices.
He added that risk experts are guides of trust for organisations while reeling out ethical requirements for the professionals to boost investors’ confidence and investments in Nigeria.
He explained efforts of the CBN on adoption of the various Basel Accords as well as ongoing efforts to upgrade to the highest and latest version.
Dr Temidayo Fasipe from the Banking Supervision Department, CBN, spoke on the topic: “Basel Accords: Journeys from Basel I to IV”.
He said that an analytical exploration of the evolution and key reforms of the Basel Accords aimed at strengthening global banking stability through successive financial crisis impacts and regulatory milestones.
Fasipe explained the role of the Basel Accord in banking regulation to prevent both banking and currency crises as well as balance of payment crises.
According to him, banking crises are not frequent, but the impact of their occurrence is usually high, hence, the need for effective regulation.
“Historically, the absence of a central bank has led to severe financial crises, demonstrating the need for regulatory oversight,” he said.
Other speakers spoke on how actions or inactions of professionals could impact the whole world either positively or negatively.
They said if professionals did it right by not cutting corners, Nigeria and global economies would experience stability.
