Flexible risk management policies touted for corporate

Speaking at a one day seminar Barclays Bank clients in Dar es Salaam on Tuesday, BAGL, Strategic Markets Origination Africa, Mohamed Sayed, said that flexible policies by corporate entities would help them in the identification and evaluation of risks.

“Policy ensures all financial risks are recognized and treated in line with the board’s management theory. A good policy must be flexible based on market conditions. It should have discipline in terms of equipment and tenor.

To achieve all this, corporate entity’s policy have to be reviewed and updated according to arising changes to the market,” said Sayed.

According to him, policies could help firms survive currency risks, Foreign exchange risks, inflation risks, interest rate risks and commodity price risks that hedging then company’s strategies. “A majority of entities across Africa do not hedge foreign exchange risks and one of the core reason cited is operational cost management.

The solution is to introduce certainty into a rate and to reduce variability of gross product margins,” said Sayed.

The Director, Head of Global Markets, Corporate and Investment Bank, Barclays Bank Tanzania Ltd, Esther Maruma, said that, the one day seminar had focused on knowledge transferring to its corporate customers from all sectors that would help them manage risks.

She said that, at least 70 CEOs and senior officials from corporate entities that are Barclays bank customers attended the seminar and hoping that they would accumulate knowledge that will help in risk management.

Source: Daily News

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