They include people with banking experience, those from analytics and then law enforcement experience.

Here i ask about the characteristics of this experience, i find the most important of these characteristics, the ability to classify and measure types of bank risks like a credit risk; interest risk and exchange risk

Those with broad banking experience of the type of risks/products covered.

I agree with that; but does anyone with banking experience be an effective and efficient risk committee member?

Dear Osama Wagdi,

Risk committee members need to be conversant with risk management topics and techniques. It is a common observation/fact that not all bankers are well-trained in risk management techniques and the adequate structure of risk management committees. In addition, there are key differences between emerging and developed markets and the stylized facts of assets returns in each of these markets. Emerging market are characterized with huge volatilities in their assets returns, large fat-tails, illiquidity, less regulatory environment, etc. Thus, they need modified techniques and approaches to risk management than developed markets.

You can refer to some of my published papers on financial regulations, detailed as follows:

1. Al Janabi, Mazin A. M., “Derivatives Securities in Emerging MENA Markets: Structuring Lessons from other Financial Markets”, Journal of Banking Regulation, Vol. 13, No. 1, pp. 73-85, 2012. [Publisher: Palgrave Macmillan Publishers, Ltd.]

2. Al Janabi, Mazin A. M., “On the Appropriate Function of Trading Risk Management Units: Principal Objectives and Adequate Use of Internal Models”, Journal of Banking Regulation, Vol. 10, No. 1, pp. 68-87, 2008.

[Publisher: Palgrave Macmillan Publishers, Ltd.]

3. Al Janabi, Mazin A. M., “Internal Regulations and Procedures for Financial Trading Units”, Journal of Banking Regulation, Vol. 9, No.2, pp. 116-130, 2008.

[Publisher: Palgrave Macmillan Publishers, Ltd.]

4. Al Janabi, Mazin A. M., “On the Inception of Sound Derivative Products in Emerging Markets: Real-World Observations and Viable Solutions”, Journal of Financial Regulation and Compliance, Vol. 14, No. 2, pp. 151-164, 2006.

[Publisher: Emerald Group Publishing Limited]

I hope it is useful!

Best Regards

Prof. Dr. Mazin A. M. Al Janabi

Full Professor of Finance & Banking and Financial Engineering

Tecnologico de Monterrey, EGADE Business School,

Santa Fe Campus, Mexico City, Mexico.