The Central Bank of Libya’s initiative to empower governance practices in the Libyan banking sector is a strategic step towards enhancing transparency, efficiency, and accountability within the Libyan banking system. This initiative seeks to establish clear standards of good governance, which ensures sound financial management and enhances confidence between banks and their customers. By focusing on implementing the COBIT 2019 governance framework, the Central Bank of Libya aims to raise the level of maturity of governance practices, which contributes to improving risk management, ensuring compliance with laws and legislation, and promoting innovation and sustainability within the banking sector. This initiative represents part of the Central Bank of Libya’s commitment to supporting the stability and growth of the Libyan economy, and providing a safe and effective banking environment that meets customer needs and supports comprehensive economic development.
What are the benefits of applying corporate governance in the banking sector?
Applying governance in the banking sector carries with it great benefits that contribute to enhancing stability and sustainable growth for the entire financial sector.
- First: Good governance enhances transparency and accountability in bank management, which builds trust between banks and their customers, which is the cornerstone of any stable financial system.
- Second: By improving risk management and compliance with laws and regulations, governance helps banks avoid fines and regulatory penalties, and reduce exposure to financial and operational risks.
- Third: Good governance practices encourage informed strategic decisions, which leads to improved financial performance and market competitiveness.
- Fourth: Governance supports innovation and sustainability within banks by encouraging investment in new technologies and sustainable business practices, which opens new horizons for growth and enhances flexibility in the face of economic changes.
Finally, governance contributes to enhancing cooperation and communication between management and various departments within the bank, which ensures the effective implementation of policies and procedures and improves the level of services provided to customers. In general, implementing corporate governance in the banking sector represents an investment in the future, ensuring sustainable growth and enhancing resilience to financial and operational challenges.
COBIT 2019 Framework
The COBIT 2019 framework is a modern and comprehensive development for corporate governance, which was developed by ISACA.
This framework aims to provide:
- A comprehensive set of guidelines.
- Tools.
- Best practices to help organizations effectively control IT resources and ensure the achievement of their strategic goals.
COBIT 2019 is flexible and customizable, allowing organizations to implement it to suit their unique needs and specificities.
COBIT 2019 provides a governance- and management-focused framework by providing core components that include processes, governance objectives, metrics, and management practices. Encourages a comprehensive approach to governance that covers end-to-end operations within an organization, from setting strategic objectives to measuring performance and achieving desired goals.
COBIT 2019 addresses key challenges such as cybersecurity, privacy, and regulatory compliance, and provides guidance on how to balance achieving goals, reducing risk, and improving value from IT investments. In addition, the framework enables integration with other standards and frameworks such as ITIL, ISO/IEC 27001, and others, making it a valuable tool for organizations seeking to improve their IT governance and management practices in a systematic and effective way.
Renad Company (RMG) services in the field of governance
In light of the new direction by the Central Bank of Libya towards strengthening governance in the Libyan banking sector through the implementation of the COBIT 2019 governance framework, the need for a reliable advisory partner to support Libyan banks in this vital path emerges. Renad Al-Majd Company (RMG), with its extensive experience in the field of governance and its team of specialized experts, provides a comprehensive package of advisory services to assist Libyan banks in designing and implementing the COBIT 2019 governance framework and raising the levels of maturity of governance practices.
Renad Al Majd (RMG) provides a comprehensive set of services that help banks in their governance implementation journey to ensure obtaining the desired value from implementing the COBIT 2019 framework, starting from:
- Evaluation of the current situation:
Analyse and evaluate the current state of governance and IT management practices at the bank to identify gaps compared to the COBIT 2019 framework.
- Design and planning of the governance system:
Designing the bank’s customized governance system based on global best practices (COBIT 2019) and the requirements of the Central Bank of Libya, while defining strategic objectives and key performance indicators.
- Support the implementation of the governance system
Providing technical and administrative support for the implementation of the COBIT 2019 framework, including integration with the bank’s existing systems and processes.
- Capacity training and development:
Organizing workshops, training programs and awareness campaigns to enhance the skills of the bank’s work team on the COBIT 2019 framework and best practices in the field of governance.
- Continuous follow-up and evaluation:
Providing periodic follow-up services to ensure the effective implementation of the governance framework and the achievement of set objectives, while conducting periodic assessments of maturity levels.
- Customized consulting:
Providing customized consultations to solve the unique and changing challenges facing Libyan banks in the field of governance.
Why Renad Al Majd Company (RMG)?
Renad Al Majd Company (RMG) has many components that make it the best choice for those seeking value from implementing governance, for example:
- Deep experience in the field of governance spanning decades.
- Many success stories of governance projects around the region.
- A team of experts certified by (ISACA) and specialized in the COBIT 2019 application
- Successful experience in implementing similar projects in the banking sector.
- Commitment to providing customized solutions that meet the needs of each bank.
- Training, knowledge transfer and qualification programs tailored to the needs of each client.
- An integrated technical system to automate governance work.
Why is the COBIT framework the ideal choice for those looking for banking sector governance?
The COBIT framework stands as a pioneering governance framework that has achieved significant successes in the banking sector globally. By providing a comprehensive framework that covers best practices for management and governance. The COBIT framework has effectively contributed to improving operational efficiency, enhancing cybersecurity, and ensuring compliance with international regulations and standards in banks.
His successes include improving visibility and transparency in IT operations, enabling banking institutions to better control their technology resources and allocate them efficiently to achieve business objectives. The implementation of COBIT has also enhanced confidence among stakeholders, including customers, knowledge holders, and partners, by providing a framework that ensures the optimal use of information technology in supporting the bank’s strategic and operational objectives. Moreover, the positive results resulting from the higher levels of maturity in governance practices established by COBIT have contributed to reducing risks associated with information technology and promoting sustainable innovation within the banking sector, which contributes to ensuring sustainable growth and achieving a competitive advantage in a constantly changing market.
We, at Renad Al Majd Company, look forward to supporting you in your journey towards achieving excellence in governance. To communicate and inquire about our consulting services and how we can help you raise the level of maturity of your governance practices, please visit our website or contact us directly by filling out the following form.
