Banks risk management: a comparison of uae national and foreign banks

“ Bank’s Risk Management: A Comparison Study of UAE national and Foreign Banks” Criteria 6 The focus of the article was to determine the risks that most banks within the UAE region face with a view of providing viable solutions. Although the authors identified the three main risk areas that the local and foreign banks face, such as foreign exchange, credit and operating risks, he failed to illustrate the causes and impacts of those issues (Al-Tamimi and Al-Mazrooei 394-409). In this regard, it is apparent that the comparison did not yield the required conclusion. This is because the emphasis was on the local UAE market, yet all risks affect all banks across the region. For instance, the foreign exchange is experienced by banks all over due to variations in money values and economic trends. The writers did not address the solution of specific risks, but generalized all risks together. It is also essential to note that solving credit and operating risks are internal problems that vary depending on the management policies. As a result, the article does not give examples of how some of the local or foreign banks in UAE handle the different risks (Al-Tamimi and Al-Mazrooei 394-409).
Alternatively, risks emerge from internal or external influences in the banking industry. The identification of risks alone does not provide a genuine basis for comparison purposes. It would be appropriate to show the common causes of those risks and their impacts on the operations of the banks. The reasoning of the writers was positive, but the conclusions were contrary to the findings. For example, the writers indicate that the UAE banks experience similar risk factors by concluding that they differ in the risk assessment, supervision and controlling. This fact does not illustrate how the entire process is achieved (Al-Tamimi and Al-Mazrooei 394-409).
Work Cited
Al-Tamimi, Hussein A. H. and Al-Mazrooei, Faris M. ” Banks Risk Management: A Comparison
Study of UAE National and Foreign Banks.” The Journal of Risk Finance 8. 4 (2007): 394-409. Print.