Alongside the development of technology, banks and financial institutions are increasingly facing risks that affect operational safety. Therefore, banks themselves need to purchase insurance for their risks. Information from the seminar " Fortifying Banks: Bridging Local-Global Perspectives in Risk Management & Transfer through Insurance Strategies" co-organized by Indochine Insurance Brokers (IIB) and Miller Singapore, with the participation of the international law firm Clyde & Co.

The seminar presented many risk scenarios in banking operations, such as fraudsters using deepfake technology to impersonate faces or fake CFOs to scam transfers, causing damages of up to millions of USD. Or bank employees using their positions to approve loans while bypassing safety principles. These risks can cause significant damage. Therefore, if insured, banks can be compensated by insurance companies, helping to share the burden of these risks.

Speakers shared that many banks worldwide have considered insurance as a shield to protect against risks and enhance resilience to the uncertainties. Mr. Simon McConnell, Chairman of the Asia-Pacific region of Clyde & Co, stated: "There are losses that have the quantum up to 100 million USD. Almost all banks in Southeast Asia purchase insurance through international markets, such as those in the UK and the US."

Mr. William Seccombe, Director of Professional & Financial Risks at Miller Singapore, shared: "When implementing insurance, banks will have to declare relevant information. This information also helps banks reassess how they are operating, what management processes they have, and what points need to be improved in their risk management process.”

However, Vietnamese banks' participation in insurance risk prevention is still limited, partly because the cost of insurance is relatively high and specialized insurance often has high technical content that the domestic insurance market currently cannot meet. Mr. Nguyễn Trung Hiếu, Head of Financial Lines and Cyber Indochine (IIB), commented: "Most banks are interested in implementation of such insurance for their operations. However, for some reasons, some banks have not fully implemented the insurance. The cost of this insurance is relatively high, usually up to several billion VND for a regular program, and for larger bank it can be even higher. Another reason is the procurement process, especially for state-owned banks or banks with foreign ơnership, which can be prolonged and include many different stakeholders"

Although the insurance premium is high, proactive insurance procurement is still necessary in banks’ risk management strategies. At the same time, it aligns with the operational safety standards of banks worldwide.

Source (VTV.VN):  Giảm thiểu rủi ro hoạt động ngân hàng thông qua bảo hiểm | VTV.VN