RBI wins 'Risk Manager of the Year' award by London's Central Banking publication

The Reserve Bank of India (RBI) has won the "Risk Manager of the Year Award 2024" by Central Banking, a leading publication based in London, UK. This accolade recognizes RBI's exemplary strides in enhancing its risk culture and awareness, affirming its pivotal role in safeguarding the stability of the Indian financial system.


"The Reserve Bank of India has been awarded the Risk Manager of the Year Award 2024 by Central Banking, London, UK. RBI was awarded the best risk manager for improving its risk culture and awareness. Executive Director Shri Manoranjan Mishra received the award on behalf of the RBI. #rbi #centralbanking #centralbankingawards," said RBI in a post on X.



RBI's Executive Director Manoranjan Mishra received the award on behalf of the institution at the award ceremony held in London.


RBI and AI for risk management:
India's central bank is on a drive to raise the use of technology in key areas like supervision and risk management but flagged the downside risks and how widespread the challenges could be in the adoption of Artificial Intelligence and Machine Learning. RBI has announced that the Greenfield Data Centre will be in its advanced stages of completion by the end of this year.

The data centre will be a primary source for research, and capacity building and cater to the emerging requirements of the financial services sector.

As part of its digital mission, the RBI also encouraged the use of AI and ML in key areas like infrastructure, payments, risk management, audit and analytics.

“Application of AI can have a positive impact on the complete lifecycle of risk management, considering the ability of AI-based tools to analyse voluminous data and identify patterns,” the RBI said in its annual report.

The central bank flagged risks due to over adoption of AI and ML, along with losses due to extreme weather events. Losses due to climate change events are not felt immediately.

“It may not be applicable to the financial industry directly, but it's a bit of a butterfly effect. The problem is that all these losses that are felt later are massive, there are economic losses for people, for organisations and overall to the country,” Lodha said.

(with agency inputs)