Financial Risk Management in Singapore

If you are planning to establish a financial services company in Singapore, then it is worth considering that the standards for conducting this kind of activity are at the highest level here. Particular attention is paid to the implementation of advanced financial risk management techniques. Competent risk management methods help to keep losses to a minimum and not to miss out on profits even in a critical situation. Therefore, competent risk management in the financial sector in Singapore is worth its weight in gold. What risks can be encountered in the business environment and what methods of taming them to use - let's figure it out in the material.

What You Need to Know About Risk Management in Singapore

To manage risks, they are first identified and measured. For each organization, the set of inherent threats differs depending on the type of activity, the environment. It is necessary to identify them, analyze them, and then select suitable methods of dealing with them.

Areas with the highest risks:

• Safety, efficiency of the firm, reliability of financial and management reporting;
• Market volatility, changes in market prices, in particular interest rates, exchange rates, credit spreads, and the value of shares.

In order to start a financial business in Singapore in accordance with established high standards, it is also necessary to establish a strong technology risk management structure, as well as provide strong authentication to protect customer data, transactions and the system.

Singapore Financial Services Company Formation: Corporate Governance Rules

Corporate governance rules that apply to Singapore-listed banks, approved exchanges, clearing houses, holding companies:

• Banking corporate governance rules;
• Regulation on Securities and Futures (corporate governance of approved exchanges, approved clearing centers and approved holding companies).

Financial Services Risk Management in Singapore: Audit

If you intend to register a financial company in Singapore, then you need to consciously approach internal audit. Internal auditors of a company must be independent and can:

• use a methodology that identifies the significant risks that the firm is managing;
• prepare an audit plan that is regularly reviewed based on its own risk assessment and allocate audit resources accordingly;
• verify the correctness and adequacy of the segregation of duties and reporting lines for the front office and risk management personnel.

Duties of directors of financial services firms in Singapore

To register a business in financial services in Singapore, you need to know that the duties of directors of companies registered in Singapore are regulated by the articles of association, which must comply with the Companies Act and the principles of common law.

The responsibilities of directors include the following:

• act in the interests of the company;
• avoid conflicts of interest;
• act within the appropriate objectives;
• disclose potential conflict;
• not use inappropriately information obtained by virtue of their position, for personal gain or for any other person or causing damage to the company.