| {"doc_id": "07c95c95803593d4cbec07819c99d1bb", "text": "CENTRAL BANK OF KENYA\nClosing Remarks by\nPROF. NJUGUNA NDUNG’U\nGOVERNOR\nCCEENNTTRRAALL BBAANNKK OOFF KKEENNYYAA\nAAtt tthhee\nJOINT WORKSHOP FOR THE DOMESTIC FINANCIAL\nSECTOR REGULATORS ON RISK CONTROL AND\nCOMPLIANCE\nGreat Rift Valley Lodge and Golf Resort, Naivasha\n21st – 22nd October 2010\n\nJoint Workshop for the Domestic Financial Sector Regulators on Risk 2010\nControl and Compliance , 21st – 22nd October 2010\nDirectors of Financial Sector Regulators present;\nMr. Sammy Makove, Chief Executive Officer, Insurance Regulatory\nAuthority (IRA);\nFacilitators from Quantum Global Wealth Management Ltd;\nParticipants;\nLadies and Gentlemen:\nI am honoured to have been invited to give the closing remarks at this joint forum\norganised by the Financial Sector Regulators. This is yet another significant step\nin our collective efforts as domestic financial sector regulators to execute our\nrespective mandates in a coordinated manner. Indeed, this workshop has offered\nus invaluable opportunities for further knowledge exchange and networking,\nwhich I believe will facilitate the necessary collaboration in our endeavours. At the\noutset, I would like to sincerely appreciate the efforts of all of those who have\ncontributed towards making this workshop a success.\nLadies and Gentlemen: The focus of this workshop has been risk and its\neffects on the financial sector. I am informed that the facilitators have done a\ncommendable job in detailing aspects of the different types of risks. In business, as\nin life itself, risk is a reality, an inescapable factor accompanying every productive\nendeavour. Fortunately, risk can be significantly reduced if well managed and also\nexpected. For us as regulators, our task is then to ensure that risks in our daily\noperations and in the business of the institutions we regulate are identified,\nquantified and managed within safe limits.\nThe key to effective financial regulation, then, is in proper risk identification,\nmeasurement, assessment and mitigation. All types of risks will involve\ndiscernible relationships between various variables, and it is our duty as\nregulators to constantly monitor these variables, their trends and relationships\nover time. This makes our collection of quality data, its processing and reporting\nan indispensable function of our mandate. The availability of quality data makes it\npossible to generate appropriate information for effective regulation. One\noutcome of this course is also that we need to re-examine our database and its\ngeneration and processing to support effective management of risks.\nLadies and Gentlemen: As financial sector regulators, risk identification and\nmonitoring is a critical mandate. Effective regulation entails keeping business risk\n2\n\nJoint Workshop for the Domestic Financial Sector Regulators on Risk 2010\nControl and Compliance , 21st – 22nd October 2010\nwithin acceptable limits, while simultaneously leaving service providers free to\nmake their operational and investment choices as they deem fit. In other words,\nour role as regulators in a liberalized economy such as ours is to facilitate, not\nstifle, business innovations. We, however, must understand the business\nenvironment and risk management to be able to regulate.\nIn conclusion, ladies and gentlemen, our journey towards regulatory harmony,\nas envisaged in our signed MoU, continues. By our discussions here, I hope our\nunderstanding of risk as a business and regulatory concern has been renewed;\nenabling us carry out our responsibilities in a more informed manner. We should\naccordingly continue our information sharing, both at technical and board level,\non risk and other areas of mutual concern as we strive towards regulatory and\nsupervisory harmony. But more importantly, we should continue to search for\ncourses that update our knowledge base and push us to the knowledge frontiers.\nThis is the only sure road for our success as regulators. Remember we have a\nfour-dimensional approach to our duty – always emphasized at the Domestic\nRegulators Platform: Advice, Cultivate Partnership, Development the\nMarket and finally, Regulate the Market.\nThank you for your attention.\n3", "source": "CBK", "stratum": "cb_requests", "fetch_date": "2026-04-26", "url": "https://www.centralbank.go.ke//images/docs/speeches/2010/Governor%27s%20Remarks%20-%20Joint%20Workshop%20Domestic%20Regulators.pdf"} |