The Emirates Securities and Commodities Authority (SCA) has organized in Abu Dhabi and Dubai awareness forums to educate personnel of brokerage companies and financial analysts on issues related to investment risk evaluation and management. Dr. Rayyan Lemand, Economic Advisor and Director of Risk Management and Evaluation Unit at the SCA, made the presentation on the theme: "Evaluation and Management of Investment Risks".
Dr. Lemand outlined a number of investment risk concepts, the various methods of dealing with and managing those risks. He explained the meaning of the term "risk" and listed the various types of investment risks, their impacts on investment, while arranging them according to priority and significance.
The forum also touched on the most significant strategies being used to limit the direct impacts of those risks on investment projects, the significance of linking risks with the targeted dividend in any investment project, the presumptions and hypothesis on which investment policies are built and the practical applications in risk evaluation.
Dr. Lemand stressed on the significance of adhering strictly to rules and regulations of corporate governance, the need for companies and institutions willing to increase their profit margins and those of their partners and shareholders to study investment risks extensively. He said such a study contributes in polishing the policies of those companies and guiding their performance towards achieving the targeted profit margin and to avoid any risk that may affect negatively the wealth of owners of the companies.
It's worth noting here that the SCA investment awareness program had held since the beginning of the year 20 forums, at an average of four forums per month. These include four forums for financial brokers and analysts, another four forums for university students and eight for the general public, including investors and other interest groups, to match with the average performance outlined in the SCA's operation plan. The awareness program also consists of other forums like legal awareness and corporate governance forums for officials of public joint stock companies.