Date: July 28, 2024

Time: 1:00 - 5:00 PM

Location: Robert Shiller Lecture Hall, CamEd Business School

On July 28th 2024, CamEd Banking and Finance Club (CBFIs) conducted a workshop under the topic “Market Risk Measurement in Banking Sector” at Robert Shiller, CamEd Business School which was presented by Dr. Lim Siphat and Mr. Ng Yok Chin as a panelist.

This event was organized by CBFIs under the topic of ‘Market Risk Measurement In Banking Sector’ to provide an in-depth exploration of various aspects of risk management crucial to financial institutions. This session highlighted the significance of understanding and mitigating market risks to ensure the stability and growth of the banking sector, facilitated by experts, delved into various risk types, including interest rate risk and foreign exchange risk.

Our first guest speaker, Dr. Lim Siphat defined risk as the possibility of negative outcomes due to uncertainty. He highlighted the importance of understanding and managing various types of enterprise risk: market risk, credit risk, operational risk, strategic risk, and liquidity risk.

To illustrate strategic risk, he used the example of Nokia's failure to adapt to market changes. Market risk, particularly interest rate risk and foreign exchange risk, was discussed in detail. Siphat emphasized the need for enterprise-wide risk management to identify, measure, and manage risks across different business lines. He shared his optimism about Cambodia's progress in adopting advanced risk management frameworks and stressed the importance of continuous learning and adaptation in the financial sector.  He also discussed the importance of measuring and managing market risks, particularly interest rate and foreign exchange risks. He introduced the concept of Value at Risk (VaR) and explained three methods for its calculation. The session also covered currency depreciation, appreciation, and strategies for managing foreign exchange risk. Practical demonstrations on using spreadsheets for risk assessment were provided. 

The event concluded with an engaging panel discussion and Q&A session featured Dr. Lim Siphat and Mr. Ng Yok Chin. They discussed the evolution of risk management, the methods used to measure market risks, and the challenges faced in implementing market risk frameworks. The importance of a strong foundation in mathematics, statistics, and finance was emphasized, along with the need for a positive attitude and a willingness to learn.

The outcomes of this event:

•  Participants gained a deeper understanding of the various types of market risk and their potential impact on financial institutions.

• Participants learned practical techniques for measuring and managing market risk, including the use of VaR and spreadsheet-based analysis.

• Participants were exposed to the latest trends and best practices in market risk management, including the importance of enterprise-wide risk management.