Seminar on Best Practice on Director Information System: What the director needs to know
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A seminar on
Best Practice on Director Information System: What the director
needs to know for the senior management and board members of the
financial institutions of Mr. Murshid Kuli Khan, Deputy Governor, Bangladesh Bank, inaugurated the programme.
At the seminar, two international experts on DIS,
Dr. YRK Reddy,
Founder and Chairman of the
Dr. Reddy pointed out the
difference between Management Information System (MIS) and Director
Information System (DIS), which is closely related to Decision
Support System and Strategy Monitoring System. Dr. Reddy said DIS
helps ensures a
proper “Control System” and “Strategy Focus” for both financial and
non financial institutions. He added that the most common framework
of DIS for financial institutions is CAMEL, which is good for
governance and supervision. It focuses mostly on financial
parameters, but needs supplementing in the context of competitive
strategy. The term CAMEL stands for Capital
adequacy, Assets
quality, Management
efficiency, Earning
quality, and Liquidity. Dr. Reddy also
presented the following recommendations to the banks on key
information to boards, which includes:
◊Capital
budgets, manpower and overhead budgets
q
◊Quarterly
results for the bank as a whole and its operating divisions or
business segments
q
◊Internal
audit reports, including cases of loss, theft, misappropriation and
dishonesty of a material nature
q
◊Show-cause,
demand and prosecution notices received from any authorities, which
are considered to be materially important by the managing director
q
◊Any
issue, which involves possible public or product liability claims of
a substantial nature, including any judgment or order which may have
passed strictures on the conduct of the bank or labour problems of
serious nature and their proposed solutions
q
◊Details
of any new products/diversification/joint ventures or collaborations
q
◊Transactions
that involve substantial payment towards goodwill, brand equity or
intellectual property
q
◊Quarterly
details of foreign exchange exposure and the steps taken by
management to limit the risks of adventure exchange rate movement,
if material
q
◊Detailed
checklist on the compliance of various statutes/regulations etc.
from functional heads with a statement highlighting any
non-compliance About 41 participants from different Banks including nationalized commercial banks (NCBs), non-banking financial institutions, and insurance companies attended the programme. |
