UNIVERSITE OUVERTE DE HCMV UNIVERSITE LIBRE DE BRUXELLES ECOLE DE COMMERCE SOLVAY MMVCFB PROGRAMME DE MAITRISE EN MANAGEMENT VIETNAM-COMMUNAUTE FRANCAISE DE BELGIQUE PHAN QUYNH ANH BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) MASTER DEGREE THESIS IN MANAGEMENT (MMVB 6) HO CHI MINH CITY 2007 MMVCFB PROGRAMME DE MAITRISE EN MANAGEMENT VIETNAM – COMMUNAUTE FRANCAISE DE BELGIQUE PHAN QUYNH ANH CASE STUDY: BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) MASTER DEGREE THESIS IN MANAGEMENT (MMVB 6) GUIDANCE COUNSELOR: DR VU HUU DUC HO CHI MINH CITY 2007 ACKNOWLEDGMENTS After learning the two years of the Vietnam Belgium Master-In-Management Program - Intake (MMVB6), I have gained knowledge on various aspects of business management which are very valuable for my application in my actual work When studying with my classmates, I have also gained the team spirit and the assistance and cooperation that help me build and develop my relationship with friends at school In preparing the thesis on “Building a risk management system at Ho Chi Minh City Investment Fund for Urban Development (HIFU)”, I would like: - To express my sincere thanks to the organizers of MMVB6 who have successfully held the courses under the MMVB Program; - To thank all Vietnamese and Belgian Professors who have educated me over the two years at MMVB in Ho Chi Minh City Open University; - To express my special thanks to Dr Vu Huu Duc for his devoted guidance and informative comments for my thesis, assisting me in completing this thesis with fruitful outcomes; To complete this thesis, I very much appreciate the assistance received from the director in charge of my department and many colleagues at HIFU who have created convenient environment for my work, my study and provided me with advices and necessary information as valuable materials for me to write up my thesis Last but not least, I would like to devote my mind and my heart to all my family members and my friends who have encouraged and supported me in the most positive way from the start until the completion of the MMVC Ho Chi Minh City, 28 February 2006 MMVB6 ABSTRACT Together with economic development, enterprises and financial institutions have faced with different kind of risks Consequently, risk management has become a critical issue for many organizations all over the world in recent years Currently, in Vietnam, this concept has still been a new issue to many enterprises, especially for state-owned company Apparently, risks in trading, including financial transactions of Vietnamese firms are likely to occur frequently and at more serious level In addition, those risks have more and more complicated and sophisticated and would lead to serious damages and losses for firms if those firms have not willing to face with those matters Accordingly, it is very crucial to have a tool of risk prevention for Ho Chi Minh City Investment Fund for Urban Development (HIFU) to deal with risks in its operation and development This research aims to identify potential risks and the current situation that may cause to the Fund’s activities and suggest a risk management system for the Fund Attempts are made to propose a risk management system for the Fund in risk management and give some recommendations for State and for the Fund itself to implement that system efficiently and effectively The research suggests that all the Fund’s employees should keep in mind the increasing risks in the Fund’s operation due to the rise in uncertainty of the market However, knowing risk management and applying an appropriate risk management will help them in preventing and minimizing loss WARRANT STATEMENT I declare that this thesis is my own work and the source of information and material that I have used have been fully identified PHAN QUYNH ANH COMMENTS OF GUILDANCE COUNSELOR TOPIC: Build a risk management system at Ho Chi Minh City Investment Fund for Urban Development (HIFU) PERFORMED BY: Phan Quynh Anh GUIDED BY: Dr Vu Huu Duc The thesis is necessary as it is meaningful in both argument and reality This is a sincere and meticulous research to apply the theory of Risk management, international standards, etc in order to propose a risk management system which is comprehensive and feasible for Ho Chi Minh City Investment Fund for Urban Development (HIFU.) The thesis was in a good presentation, written in a clear and transparent style and reasonably structured During time doing this thesis, student Phan Quynh Anh has learning spirit, serious research and has executed well the plan and research’s process as she proposed As such, the work as performed by student Phan Quynh Anh has completely met requirements of the thesis of the Master-in-Management Program As the guidance counselor, I evaluate the quality of this thesis at the level: Great Distinction: 18/20 Ho Chi Minh City, 28 February 2006 (Signed) Dr Vu Huu Duc Guidance Counselor COMMENTS FROM ASSESSOR TOPIC: Build a risk management system at Ho Chi Minh City Investment Fund for Urban Development (HIFU) COMMENTS FROM ASSESSOR TOPIC: Build a risk management system at Ho Chi Minh City Investment Fund for Urban Development (HIFU) TABLE OF CONTENTS INTRODUCTION 1 Background Objectives and scope of the research Methodology Research framework Structure of research CHAPTER I - LITERATURE REVIEW 1.1 General concepts about risk management 1.1.1 Concepts of risk 1.1.2 Concepts of risk management 1.1.3 Objectives of risk management 1.1.4 Cause and factor of influences 1.1.5 Risk management’s keystones 1.1.6 The major risks in finance industry 1.1.7 Summary of some typical cases 1.2 Introduction of COSO’s Enterprise risk management 1.2.1 Introduction of COSO 1.2.2 11 13 COSO – Internal Audit Framework, 1992 and Improvements to Enterprise Risk Management Framework 1.2.3 13 14 Introduction of COSO’s Enterprise Risk Management Integrated Framework 17 1.2.4 Enterprise Risk Management defined by COSO 17 1.2.5 Components of COSO’s Enterprise Risk Management Framework 19 1.2.6 Benefits of Enterprise Risk Management 20 1.2.7 Limitation of Enterprise Risk Management 21 CHAPTER II - CURRENT SITUATION AT THE FUND 23 2.1 Overview of local investment funds in Vietnam 23 2.2 Overview of the Fund 24 2.2.1 History and development 24 2.2.2 The Fund’s missions 27 2.2.3 Organization chart 28 2.2.4 Nine years of operation (1997 – 2005) 29 2.2.5 Oriented development for period 2006-2010 30 2.3 Current management processes 32 2.3.1 The appraising process 32 2.3.2 The process of trusted fund management 33 2.3.3 The process of credit financing 34 2.3.4 Direct investment process 35 2.4 Current situation of risk management at the Fund 36 CHAPTER III - PROPOSAL RISK MANAGEMENT SYSTEM AT THE FUND 3.1 Propose to build a risk management system at the Fund 43 43 3.1.1 Establishing the internal environment 43 3.1.2 Setting the objectives and event identification 44 3.1.3 Setting the risk assessment and risk prevention 45 3.1.4 Setting the monitoring procedure 46 3.2 Proposed risk management procedures in specific activities 47 3.2.1 47 3.2.2 3.3 Credit risk management procedure Anti-money laundering procedure 56 Recommendations 71 3.3.1 General direction 71 3.3.2 Recommendations for the Authority – State 71 3.3.3 Recommendation for the Fund’s Board of Directors and Board of Management CONCLUSION REFERENCE 75 78 CHAPTER III Registered address; Board of directors; Owners or shareholders; shareholders in Board of Management (Occupation/Sources of income of all such persons) Nature of the companies’ business to include type of product dealt in, the countries to which the goods are sold; Details of all places from where business is carried out, probably addresses of shops/trading addresses, if any The identity of principal shareholders and directors should be checked as for personal customers (name, address, occupation) Annual income (to be co-related with credits in the account and financial statements); Sources of funds/ source of income – periodic balance sheets to be obtained, turnover to be cross-verified with account turnover; A visit to the place of business should be undertaken if turnover and risk are high; Verification of Trusted Fund Normally accounts of trusts should be opened only for registered trusts or trusts set up in offshore locations where equivalent money laundering procedures are in place In all accounts of trusts documents evidencing the following should be obtained: Formation of the trust, its purpose and beneficiaries (obtain copy of trust deed) Evidence/Resolution confirming appointment of current trustees Powers of the trustees (may be governed by the provisions of the trust deed) BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) 66 CHAPTER III Nature of transactions to be put through the account (purpose of opening the account) Principal trustees Providers (Settlers) of the trust Beneficiaries of the trust Anticipated sources of income/revenues for the trust For existing trusts, copies of income and expenditure statement etc should be sought for Please note that trustees have no powers to delegate their responsibilities, particularly relating to trust funds Therefore, the Fund should be careful in accepting mandate in favor of third parties for operation of trust accounts and such instructions should be accepted only after careful reading of the powers of the trustees in this regard Finally, identification of customer information is the best way to know the clients, and their business nature and source of their money in battening launder the money During the verification the clients’ information or if there is any suspicious customer information, each division may define authenticity of such information by: Researching, obtaining information via other entities that had, or are having relationships with customers, and collating obtained information with the one provided by customers; Obtaining information from branches, representative offices, subsidiaries, affiliates, etc at the origin of the information provided by customers; Obtaining information from competent regulators at the origin of the information provided by customers; Sourcing from the Anti-Money Laundering Information Center (AMLIC) of State Bank; Other measures compliant with laws, and assuring identification of customers BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) 67 CHAPTER III d Building a control procedure Establish the AML Steering Committee Responsible for organizing, directing, examining, and monitoring the compliance by the Fund units with the AML relevant statutory requirements; for registering with the AMLIC (Anti-Money Laundering Information Center); and for reporting to the Fund Board of Management, and to the State Bank of Vietnam Shall be obliged to handle information sent by departments on realizing suspect signs Member of the AML Steering Committee is AML representative of each department Appointment of MLRO (Money Laundering Representative Officer) - The MLRO who is the leader of the AML Steering Committee has competent to carry out the controlled function, - The MLRO must be given authority to sign in all the reports which provide to the regulators, - The MLRO are responsible for receiving internal reports, have access to know customer information, make external reports to the regulator, - The MLRO has the highest authority in monitoring AML procedures who will give the last approval before starting the disbursement Appointment the Money Laundering Representative at each department who will assist the MLRO to monitor money laundering procedures in his/her division to carry out preliminary investigations relating to any suspicions reported This person are not allowed to decide whether a report should be made to the regulator or not and has no discretion in this matter, otherwise all suspicion reports should be reported to the MLRO at the earliest opportunity BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) 68 CHAPTER III must assist his/her leaders to develop, address all staffs in the execution of AML procedure, Establish customer profile including complete and clear detailed forms for clients (such as Customer Information Form, Customer files note, Suspicious Activity report) Asking customers who will be allowed to get a loan from the Fund fill in two forms to obtain information at the beginning of transaction Based on these forms, the following division will easily seize and monitor customer files Each division creates its own process and checklist to get and identify such those information Checklists will help the Fund’s employees to exercise transactions and authorized people (AML representative of each division) to examine adequate contents easily before transferring client’s document to other department to next step in the process When receiving the document, each staff have to check all client’s information to know who they are and is responsible for collecting and identifying missing information because there are some information only has if there is enough authority The accounting department is the last division which has to check all information before effecting a loan and disbursement If all departments have done all steps and obtained all necessary information, the AML representative of accounting division has to sign to the Summary Checklist before sending to the MLRO to get approval He has to give the opinion about agreement, refusing or supplementation before approves the disbursement Any suspicious sign must be report to MLRO by Suspicious Activity report by written record The MLRO will review all reports and discuss them with the member of AML Committee to ensure that the information provided in the report is clear and comprehensive BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) 69 CHAPTER III All staff member not allow to any thing that might be construed as prejudicing enquiries Records of suspicions, whether reported to the regulator or not, should be retained for years from the date of the transaction Where the regulator has initiated investigation in any transaction, any records that assist with investigations must be retained until formal advice is received that it is not longer needed All cases of frauds/attempted frauds not only have to be reported to the police but also to the regulator, the ALMIC Thereafter, the operation of that customer will follow the direction of the regulator If the suspicion relates to an offence which has arisen in a foreign country the MLRO will also consider making a report to the police authorities in that country In case of suspicion, the Fund can apply one of temporary strategies as the follows to not deal with such risks: - Do not take any transactions; - Blocking of accounts; - Sealing off holding in custody of assets; - Holding in custody offenders; - Other preventing strategies according to provisions of laws However, applying temporary strategies must be implement precisely competence and provisions of laws and not effect to the security of financial and monetary system BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) 70 CHAPTER III 3.3 Recommendations: 3.3.1 General direction According the assessment of actual situation, oriented development for next years and introduction of COSO risk management framework is used popularly all over the world in above chapters, the author gives some recommendations in order to not only overcome existences and weakness but also create good conditions to set up an effective risk management Direction sends out the recommendation base upon following bases: - Corresponding to COSO standards in regarding risk management, and inheriting the world’s experiences - Corresponding to Vietnam’s conditions: provisions of law, the Fund’s characteristics, human resources and employees’ skills of the Fund - Ensure the balance between reached benefit and cost paid 3.3.2 Recommendations for the Authority – State a Perfection legal framework for the Fund’s activities as well as for credit activities Currently, the Fund operate in compliance with the following legal documentations: - Decision of Prime Minister No 644/TTg dated 10/9/1996 regarding the creation of the Fund; - Operation license No 441 TC/TCNH dated 19/6/1996 of Ministry of Finance; - Circular No 43/TCNH issued be the Ministry of Finance dated 07/7/1997 relating to guidance in regulations of financial management for the Fund; - Decision of HCMC People’s Committee No 1148/QD-UB-KT dated 15/371997 defining the Charter of organization and Operation of the Fund BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) 71 CHAPTER III However, the Decision of the Prime Minister does not provide clarity about legal status for the Fund, and does not provide clarity about the regulatory framework within which it should operate Accordingly, the Fund is not governed by the law on banks and financial institutions or the law on private enterprises or the law on state owned enterprises (SOEs) This lack of legal clarity limits the potential for the Fund to issue bonds in its own name If the Fund were to be governed by the Law on Enterprises or the Law on State Owned Enterprises, it would not be allowed to raise money for lending If the Fund were to be governed by the law on banks and credit institutions, it would be subject to strict financial restrictions As a result, setting up a legal framework for the Fund-like funds now is a critical matter for the Fund’s activities HCMC PC should stipulate the responsibility to Board of Management and Board of Director of the Fund, concurrently the State Bank should stipulate the responsibility to commercial banks (are the Fund’s partners in syndicated loan contracts) in assure risk management at unit Fast perfect legal status for the Fund in order that it can be qualified to join into Credit and bank association State Bank must set up the strategy, policy, comprehensive risk management procedure as well as specific procedures for different kind of risks The Regulatory must develop derivate products that banks, financial institutions can use to minimize the risks for their clients The authorities must have responsibility for assessing the efficiency of risk management system of the Fund periodically as well as banks and enterprises in order to help them in better use b Establish reliable information channels for banks and enterprises - To perfect the operation of Credit information center (CIC) of State Bank, including: all information of client’s debt status at credit institutions, some integrated information analysis about clients to pay attention to banks Besides, BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) 72 CHAPTER III The CIC needs to apply modern information technology for members to gain and deploy information easily In addition, need stipulate strictly banks, members with respect to information quality provided, period of time provided and information secrecy If the Fund is allowed to join into the Credit and bank Association, the Fund’s credit activities will have more effective tool in evaluating clients - A fluent information channel between authorities such as Tax Authority, State Bank and Police, etc need to be built and improved This requires the need of strong connection between relevant organizations; safety measurements and security of information system and this also need of strict regulations and sanctions of information security, limiting information users - State Bank must carried out comprehensive risk estimate in settlement system and apply information technology to propose and deploy solutions of risk prevention - Building risk- monitoring system that is capable of warning risks soon for financial organizations - Insurance is a kind of useful risk sharing which has used a lot by many entities all over the world Therefore, the Insurance Business Law should be perfected in correspondence with international practices to ensure the full right of clients Besides, insurance companies have to modernize information technology in financial operation management, especially in developing safety/security technology, risk assessment technology to prevent and minimize losses and make advantage for clients participating in insurance as well as claiming for compensation - Up to now, Decree 74/2005 that is regarding AML issued by the Government is almost not effective because its legal status is very low and Vietnam is not a member of FATF (Financial Action Task Force) so that money laundering BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) 73 CHAPTER III concept is still strange to everyone and every enterprise Consequently, the authorities ought to disseminate widely this concept to improve people’s awareness Since then, everyone will consider origin verification requests as an inevitable of an anti money laundering process that in the past is a sensitive point to enterprise as well as banks in appraisal process before and after disbursement - Currently, the AML Information Center of State Bank has established but has still very limitative actions so that it is very critical to perfect and improve the role as well as mission of this center Center need to coordinate closely with specialized agencies as Interpol, economical security in implement measures in combating to money laundering in compliance with laws and Decree 74, otherwise Center can ask these authorities to assist if necessary - The Government need to stipulate strictly provisions and call for harmonization of all of departments as well as all of banks, credit institutions to establish the anti-money laundering procedure in order to avoid client who does not want to be verified the status will come to borrow the bank without money laundering prevention Anti money laundering can be effective when it is deployed and is implemented on whole economy scale along with the corporation of every one and all economic sector - All members that have anti money laundering procedure are allow to access to all information, suspicious list of money laundering activities which currently only has been known by Ministry of Police and related offices BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) 74 CHAPTER III 3.3.3 Recommendation for the Fund’s Board of Directors and Board of Management a Perfection of legal framework - Actively push local authorities to issue a set of special legal documents for the Fund’s operation so that the Fund can develop at its utmost degree its role and its capacities as well as its internal resources - To continue applying for joining into the Credit and Bank association to take advantages from this association - The Fund should implement the Assets Liabilities management (ALM) together with setting the risk management system to ensure that the Fund is able to cover the potential market risks such as interest risk, foreign exchange risk and liquidity risk - The more active participation into the interbank capital market in the future will also help us to better monitor the changes in the capital market and allows us to forecast the changes in the interest rate more precisely than current situation b Provisioning for doubtful loans Based on regulations of Ministry of Finance, The Fund has currently to provide for doubtful investments provision occurred from main activities of the Fund: credit finance and direct investment The provisions will help the Fund have a financial source to compensate for any losses that may incur during the current and to secure the Fund’s business funds c Set up a date base Prior to managing risks it is critical that the Fund must identify and measure risks This requires setup of a Management Information System (MIS) and monitoring its data base BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) 75 CHAPTER III i MIS data base shall be timely and completely updated with necessary information on business activities in a very detailed manner In the data base, any correction, adjustment shall store in the system any details for tracking (i.e name of officer who corrected, date of correction, etc.) ii A system of authorization of right for access and exploitation of the above data base iii Tools for creating reports and management reporting and any necessary analyses iv Structures that allow auto-update of necessary information v The data base shall be storage of information made available for reference during the process to appraise and verify information vi Management information system (MIS) will replace the management of customer information on excel spreadsheet as currently many employees of the Fund are doing This MIS must have enough client information, reports to facilitate following up the loans obtained by the customers Based on reports printed out from this MIS, the Fund may easily identify overdue loans and from there have timely treatment to minimize risks that may occur d Improve awareness in international standards The Fund has dealt with more and more the international organizations; therefore, it is necessary for the Fund to become professional Consequently, together with application of Vietnamese regulations and local laws, all staffs must pay attention to some popular international standards, best practices in over the world in order to get more knowledge, experience as well as awareness improved e Enhancement of supervision and internal control functions Currently the Fund does not have a separate function to handle controls over specific processes and activities except for the Inspection Board The Inspection Board BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) 76 CHAPTER III is established by the Board of Management and is only responsible for examining, supervising activities of the General Director, Chief Accountant and other operational departments and divisions of the Fund on compliance to laws, the Fund’s charter, financial statutes, resolutions and decision of Board of Management and reporting to HCM City People’s Committee Therefore, in order for the risk management system operates efficiently, the Fund should establish an internal audit function This function has the responsibility to examine, supervise specific activities of each department This function should also be responsible in examining, evaluating and reporting on sufficiency as well as effectiveness of the risk management process at the Fund f Staff training - Increase the capacity building in regarding to internal control as well as risk management - Select employees with experience, best quality and capacities to participate in the risk management task - Regular organizing training courses, seminars to upgrade levels of knowledge, as well as perception of the Fund’s employees - Issuing some disciplines for staffs in acting the duties because it is very important for risk management to have relevant information and clear communications g Improvement internal environment - Encourage staffs to learn and aware about the risks as well as risk management theory - Create a risk culture at all levels in order that everyone is prudent in their tasks - The organizational structure must be clearer hierarchy and decentralization - Information must be transparent to avoid the misunderstand or corruption BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) 77 CONCLUSION CONCLUSION Vietnam economy is facing with changes and development on the way to integrate into the world, there are not only many opportunities but also threats reaching to a company Many firms also face and have been impacted from risks related to the economy factors, political and legal environment Therefore, how to deal with risks and how to prevent risks are critical issues for many firms in Vietnam, especially Vietnamese firms Regarding to the increasing development, the development of current activities as well as the oriented development 2006 -2010; it is essential to pay attention to capacity building for the Fund Up to now, the Fund has received many technical assistance from many international organizations such as WB, ADB, AFD, USTDA, etc Accordingly, risk management is the key field that is received the most concern of those technical assistances Besides, having risk management system is become one of among of the necessary requirements in most of negotiations between the Fund with the foreign organizations As a result, this research aims to use an COSO enterprise risk management framework to suggest a risk management system as well as suggest an international standard for the Fund This framework has applied in the risk management system of many enterprises in the world, hence, having the international framework will be a middle step for the Fund become more professional in the course of integration Not only the Fund is impacted by the changes of Vietnam’s economy in the future but also all economy sectors and to build a risk management system for a company is really necessary to Vietnam’s companies from now on BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) 78 REFERENCES The Committee of Sponsoring Organizations of the Treadway Commission, (2004), Enterprise Risk Management Integrated Framework, AICPA Nguyen Anh Tuan (2006), Risk Management in Trading, the Labor – Society Publishing House, Hanoi, Vietnam Nguyen Thi Ngoc Trang (2006), Risk Management in Finance, The Publication of Statistics, Ho Chi Minh City, Vietnam The Ministry of Planning and Investment, The Five Year Socio-Economic Development Plan 2006-2010, Hanoi March 2006 Instruction No 02/2006/CT-NHNN dated 23/05/2006 of State Bank regarding the enhancement of prevention measures and minimizing risks in financial institution’s operation Decree 74/2005/ND-CP of June 2005 issued by the Government regarding Anti-Money Laundering Official Letter 281/NHNN-TTR.3 of 30 June 2006 issued by the State Bank of Vietnam providing financial institutions with guidelines on certain elements of Decree 74/CP issued by the Government in respect of anti-money laundering Some articles about credit banking crimes publicized in Police Newspapers, Labor Newspapers, The Youth Newspapers and Internet in 2004 James Lam (2003), Enterprise Risk Management, From Incentives to Controls, John Wiley & Sons, Inc., Hoboken, New Jersey, USA 10 Principal Contributors (2004), Enterprise Risk Management – Integrated Framework (Executive Summary), PricewaterhouseCoopers LLP, USA 11 C Arthur Williams, Peter C Young and Michael L Smith (1998), Risk Management and Insurance (6th ed.), McGraw – Hill International Editions (Finance Series), Singapore 12 Management Update Information, Risk Management Concept http://www.managementupdate.info/risk_management.htm 13 Harper Risk Inc., “Glossary of Alternative Risk Financing” http://www.harperrisk.com/ArtGlossary/ArtGlossab.htm 14 Farlex, Inc, Financial Dictionary, http://financial-dictionary.thefreedictionary.com/Foreign-Exchange+Risk 15 Paul E Lindow, Jill D.Race (2002), Beyond Traditional Technique, online issues, July 2002, AICPA http://www.aicpa.org/pubs/jofa/jul2002/lindow.htm 16 Adam Green, A process approach to project management, http://www.arcom.ac.uk/workshops/01-Loughborough/05-Greene.pdf 17 Glyn A Holton, (2004), Defining risk, Financial Analyst Journal, Volume 60[6], CFA Institute 18 Bank Training Center (2006), Risk Management in Banking, Web Sites: www.wikipedia.com www.mof.gov.vn www.tuoitre.com.vn www.sbv.gov.vn http://eecs481.pbwiki.com/Risk%20Management http://en.wikipedia.org/wiki/Market_risk www.hifu.com.vn ... Enterprise Risk Management Enterprise risk management provides enhanced capability to: Align risk appetite and strategy BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT. .. MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN DEVELOPMENT (HIFU) 31 CHAPTER II 2.3 Current management processes 2.3.1 The appraising BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI. .. Public and transparent Actively response risks Control: what methods are in place to protect or deal with that situation BUILDING A RISK MANAGEMENT SYSTEM AT HO CHI MINH CITY INVESTMENT FUND FOR URBAN