Quantitative risk management plays a particularly important role in the financial and insurance sectors, helping to minimize various types of risk, including credit risk, market risk, liquidity risk, and operational risk while providing early warnings of impacts in crisis situations that may arise in the future.

On the morning of November 2, 2024, National Economics University (NEU) hosted a scientific seminar on “Quantitative Risk Management in the 4.0 Era: Innovation and Applications.” The event attracted more than 60 risk management experts and researchers from state regulatory agencies, commercial banks, insurance companies, and universities, as well as students and learners in Actuarial Science and Risk Management at the Faculty of Mathematical Economics.

A view of the seminar

Attending the seminar were Assoc. Prof. Dr. Bui Huy Nhuong, Vice President of NEU; Dr. Nguyen Quang Huy, Rector of the College of Technology; Dr. Nguyen Manh The, Dean of the Faculty of Mathematical Economics; leadership representatives from colleges, departments, faculties, institutes, and centers; experts and researchers; and a large number of students and learners in Actuarial Science and Risk Management at the Faculty of Mathematical Economics.

Assoc. Prof. Dr. Bui Huy Nhuong, Vice President of NEU, highlights the importance and practical applications of quantitative risk management

In his opening remarks at the seminar, Assoc. Prof. Dr. Bui Huy Nhuong, Vice President of NEU, emphasized: “Quantitative risk management is an important field that has been growing rapidly in Vietnam. The University is committed to providing the fullest possible support for developing learners’ research and practical capabilities in this field to meet the growing needs of society and the digitized economy.”

Quantitative Risk Management in the Digital Age

Quantitative risk management is a rapidly developing field that applies mathematical methods and quantitative models to identify, assess, and analyze risks. It is an essential tool that helps organizations prevent and mitigate potential negative impacts. By implementing effective risk management, organizations not only protect their profits but also maintain stability, thereby enhancing their competitiveness in the market.

As big data continues to grow, quantitative risk management methods are continually being refined for greater accuracy and effectiveness. These advances help businesses and financial institutions improve their ability to forecast and respond to complex market fluctuations, thereby strengthening their resilience in crisis situations.

A Broad Market for Applications

Quantitative risk management has a wide range of applications across many fields, particularly finance and insurance. Organizations such as banks, insurance companies, and investment funds all need quantitative methods to manage various types of risk, including credit risk, market risk, liquidity risk, and operational risk.

These methods also help organizations assess their resilience in crisis situations, ensuring that they can meet regulators’ stringent standards and protect their assets against adverse fluctuations.

Presenting an overview of risk management systems at Vietnamese commercial banks, Nguyen Thi Thuy Linh, Senior Expert in the Legal and Risk Management Division at Lien Viet Post Joint Stock Commercial Bank, noted that building and developing risk management systems is helping Vietnamese banks continually improve and strengthen the confidence of customers and regulators.

Ms. Linh also discussed plans to apply artificial intelligence (AI) to risk assessment systems, build a sustainable risk management culture, and integrate environmental, social, and governance (ESG) factors to establish a positive and trustworthy image for banks.

Ms. Nguyen Thi Thuy Linh discusses modern risk management trends that integrate various technologies such as AI, as well as cultural and social factors.

In the second presentation, Vuong Minh Giang, Head of the Department of Risk Management Models and Tools at Vietcombank, discussed the process of applying quantitative risk models at commercial banks in Vietnam. Mr. Giang emphasized that, since 2014, the State Bank of Vietnam has guided banks toward adopting the Basel II international capital adequacy standards, and many institutions have completed the development of Basel II and A-IRB risk management models. This not only ensures the safety of banks’ operations but also enhances their competitiveness in the international market.

Mr. Vuong Minh Giang discusses the application of quantitative risk models at commercial banks in Vietnam to meet international standards such as Basel II.

Dr. Hoang Duc Manh, Vice Dean of the Faculty of Mathematical Economics, introduces the academic program in risk management at the Faculty of Mathematical Economics, College of Technology

Dr. Nguyen Manh The, Dean of the Faculty of Mathematical Economics, moderates the discussion session at the seminar

The seminar “Quantitative Risk Management in the 4.0 Era: Innovation and Applications” was organized to seek expert input while providing an opportunity for students and master’s students to learn more about education and training in this field.

In particular, the seminar provided a valuable opportunity for College of Technology students in general, and students in mathematical economics, actuarial science, and risk management at the Faculty of Mathematical Economics in particular, to gain deeper exposure to quantitative risk management, a field that requires mathematical skills, data analysis capabilities, and in-depth financial and economic knowledge. It also offered an opportunity to help quantitative risk management gain the recognition it deserves and become an essential component in supporting the sustainable development of businesses and organizations in the age of digitization.

Additional images from the seminar:

Article and photos: Faculty of Mathematical Economics & Department of Communications

This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn.