Islami Bank Stresses Risk Governance

Islami Bank Bangladesh PLC has reaffirmed its commitment to strengthening governance, transparency, and effective risk management, emphasising that these principles are essential for sustaining client confidence and ensuring long-term institutional stability. The message was delivered during the bank’s Annual Risk Conference held on Saturday at Islami Bank Tower in the capital.

Speaking as the chief guest, Managing Director Md. Omar Faruk Khan stated that, as the country’s largest Shariah-based banking institution, the bank must ensure that strong governance practices and robust risk controls are embedded at every operational level. According to him, the trust and confidence of clients remain the organisation’s most valuable asset and the foundation upon which the bank continues to expand its services.

Khan emphasised that achieving business growth alone is insufficient to build a resilient financial institution. Instead, he highlighted the importance of establishing a comprehensive and effective risk management framework capable of identifying, evaluating, and mitigating potential threats before they affect operations. He noted that sustainable growth can only be achieved when risks are properly assessed and controlled through systematic processes.

The managing director further explained that a well-structured risk management system helps institutions detect emerging vulnerabilities early, enabling management to remain alert and responsive. By anticipating potential challenges, financial institutions can take preventive measures and reduce the likelihood of operational disruptions or financial losses. He encouraged all officials to demonstrate greater responsibility, vigilance, and professionalism in managing risks, stressing that many organisational problems can be avoided if risks are recognised and addressed promptly.

Md. Alauddin Hossain, Director of the central bank, attended the conference as the guest of honour and shared insights on regulatory expectations and the evolving risk environment within the banking sector. The event was chaired by Engineer Mohammad Jamal Uddin Mazumder, Additional Managing Director and Chief Risk Officer of the bank.

Senior executives also participated in various sessions, including Additional Managing Directors Md. Altaf Hossain and Dr. M Kamal Uddin Jasim, as well as K. S. Omar Faruk, Head of the Risk Management Wing. The welcome address was delivered by A. S. M. Rezaul Karim, Director General of the Islami Bank Training and Research Academy.

In addition to executives from the head office, zonal and branch heads within the capital attended the programme in person, while officials from across the country joined the sessions through a virtual platform, reflecting the bank’s nationwide operational presence.

The conference served as a platform for reviewing the bank’s current risk management practices and discussing future strategies aimed at strengthening internal controls and regulatory compliance.

Through initiatives such as the Annual Risk Conference, Islami Bank Bangladesh PLC aims to reinforce a culture of proactive risk awareness and institutional discipline. The bank believes that strengthening risk governance will play a critical role in ensuring sustainable growth, maintaining financial stability, and preserving the confidence of its clients and stakeholders.