Arab Banks Must Shift from Traditional Oversight to Predictive Risk Management, Says Mohamed El-Etreby
Mohamed El-Etreby said Arab banking institutions are undergoing an unprecedented transformation that requires more advanced and flexible risk management models capable of adapting to accelerating economic, technological, and geopolitical changes.
Speaking during the opening of the 8th Annual Forum of Heads of Risk Management Departments in Arab Banks, held in Alexandria under the theme “Leadership in Risk Management: From Oversight to Foresight,” El-Etreby stressed that risk management departments are no longer limited to traditional supervisory roles, but have become strategic partners in banking decision-making and institutional growth.
The forum brought together senior banking executives, risk management experts, and financial sector leaders from across the Arab region to discuss the future of banking risk governance amid rising technological and economic disruptions.
El-Etreby, who also serves as Chairman of the Union of Arab Banks and CEO of National Bank of Egypt, said today’s global environment has made risks more complex, interconnected, and influential on financial and economic stability.
He noted that banking risks are no longer confined to traditional areas such as credit, liquidity, and market fluctuations, but now extend to cybersecurity threats, artificial intelligence risks, climate change, supply chain disruptions, geopolitical tensions, and rapid changes in customer behavior driven by the digital economy.
According to El-Etreby, successive global crises — from the international financial crisis and the COVID-19 pandemic to current geopolitical and economic turbulence — have demonstrated that institutions with predictive vision and advanced risk management systems are better positioned to maintain resilience, continuity, and growth.
He emphasized that the concept of risk management has undergone a major transformation over the past two decades, evolving into a strategic function that balances growth, stability, innovation, governance, and sustainability.
“Modern leadership in risk management requires new mindsets built on foresight, deep analysis, and the ability to identify early indicators of economic, technological, and political change,” El-Etreby stated.
He added that Arab economies are currently witnessing major economic transformation projects, expanding digital economies, infrastructure investments, and fintech development, all of which require more agile and forward-looking banking systems.
The banking leader also highlighted several major challenges facing risk management departments across Arab banks, including the growing threat of cybercrime and digital financial fraud, the impact of artificial intelligence and fintech on traditional banking models, increasingly complex international compliance requirements, climate-related risks, and geopolitical volatility.
El-Etreby stressed the importance of investing in human capital and building banking leadership teams equipped with advanced analytical, strategic, and technological capabilities.
He also called for accelerating digital transformation within risk management systems through the adoption of artificial intelligence, big data analytics, and predictive models to improve the efficiency and accuracy of decision-making processes.
Additionally, he emphasized the importance of institutional integration between risk management departments, executive management, and boards of directors to ensure that risk management becomes an integral part of organizational culture and daily decision-making.
El-Etreby further noted that the future of global banking is increasingly linked to sustainable finance and integrating environmental, social, and governance (ESG) standards into financial performance frameworks, requiring Arab banks to embed sustainability principles into their risk management strategies.
He concluded by stressing that successful banking institutions in the future will not simply be those with strong capital bases, but those capable of strategic thinking, rapid response, institutional flexibility, and anticipating crises before they occur.
The forum was described as an important platform for exchanging expertise and developing practical visions that can help Arab banks build more resilient, advanced, and sustainable risk management models capable of navigating the evolving global financial landscape.