Mongolia Takes Steps to Strengthen Risk Management in Banking Sector

The Bank of Mongolia’s Risk Management Unit (RMU) is playing a crucial role in managing financial and operational risks for the institution. Led by Director Mrs. Bayanzul D., RMU’s key responsibilities include developing risk management policies, identifying potential risks, and implementing measures to mitigate them.

Key Responsibilities

• Developing policy proposals on financial and operational risk management
• Conducting research and analysis to identify areas for improvement in risk management practices
• Identifying and monitoring potential financial risks associated with managing foreign exchange reserves and implementing monetary policy
• Defining criteria for loan collateral and developing lists of eligible financial assets

Collaboration with Other Departments

RMU works closely with other departments within the bank to identify and assess operational risks. The unit provides information and recommendations to management and staff on operational risk management best practices and ensures the continuity of operations in the event of disruptions or crises.

Importance of RMU’s Efforts

Bank officials emphasize that RMU’s efforts are crucial for maintaining stability in Mongolia’s banking sector, particularly in light of the country’s rapid economic growth and increasing integration into global markets. “RMU plays a vital role in helping us identify and mitigate potential risks, which enables us to make informed decisions and maintain our commitment to financial stability,” said a senior bank official.

Conclusion

Overall, RMU’s work is seen as a key factor in Mongolia’s efforts to strengthen its risk management practices and promote a stable and resilient banking sector. By identifying and mitigating potential risks, the Bank of Mongolia can make informed decisions and maintain its commitment to financial stability.