The Institute of Internal Auditors with Qatar University’s Scientific Accounting Association hosted a very successful seminar at the Ramada hotel sponsored by Ernst & Young. Dr Nasir Ahmad, Partner and Head of Financial Services Risk Management at Ernst & Young Middle East addressed on the topic  "Risk Management in Corporate Treasury". This interactive session well attended by over 120 members and was interesting.

President of IIA Qatar Sundaresan Rajeswar in his introductory remarks sought auditors to earn recognition, trust and demonstrate value by helping respective organizations to face risk at this time of turmoil. Robert Abboud, partner of E&Y, introduced his colleague and talked briefly on the subject of risk management in light of the current financial crisis. In Robert’s view “there will be a slow down in growth, but the economy will eventually pick up in the longer term. One should be ready and prepared for the imminent boom; in fact, our economies are better prepared now for the boom to come. The presentation touched upon the role of Internal Audit, the risk manager’s action pointers and what level of oversight should be in a Corporate Treasury function.

The key speaker, Dr Nasir, addressed the audience in detail on the key functions of a corporate treasury: such as management of cash and liquidity, investment, financial risk, counterparty relationships, capital market funding and corporate finance.

Dr Nasir highlighted some potential actions in the times of global liquidity and credit crisis. “The shrinking of foreign exchange liquidity can be addressed by reduction in FX exposures, by obtaining alternative funding and executing liquidity contingency plans. At the time of falling capital markets it is safer for organizations to reduce risk appetite and move to more liquid positions he stated.

According to Dr Nasir, a lot could be learned from existing risk management techniques and available risk models, developed in the last twenty years in the banking and insurance industries. Risk management models could be applied to a wide array of risks as the technology of analyzing risk is similar across industries, although tailoring is the key. Illustrative list of financial risks tasks for treasurer along with templates for reporting were provided

Dr Nasir stated that there is sometimes a lag in understanding of the complexity of financial engineering products as well as the significance of credit ratings.

Replying to a question whether the risk management function is to be blamed for investment losses suffered by banks, the speaker cautioned the audience that even though risk managements’ role is important, ultimately the implementation of sound corporate governance is critical. The risk appetite and culture in the organization are key contributors to investment decisions.