Guest Session on Risk Management for MBA September 2025 Intake – 24th February 2026

Embark College hosted a focused and insightful Guest Session on Risk Management for students of the
Financial Markets and Derivatives Management (FMDM) specialization in MBA Semester 2 (Sections A
and B) on 24th February 2026. The session was expertly led by Mr. Pragalv Neupane, a respected finance professional and risk management specialist with extensive experience in Nepal’s banking and financial services sector. Currently associated with one of Nepal’s leading commercial banks in a senior risk oversight capacity, Mr. Neupane has built a strong reputation for his practical expertise in credit risk,
market risk, operational risk, and enterprise-wide risk frameworks areas increasingly critical in Nepal’s
evolving financial landscape.

The session was tailored to provide Semester 2 FMDM students who are deepening their understanding
of financial markets, derivatives pricing, portfolio strategies, and regulatory compliance with a grounded,
practitioner’s perspective on risk management. Mr. Neupane opened by framing risk management not as
a defensive compliance exercise, but as a strategic core competency that enables financial institutions to
protect capital, seize opportunities, and create sustainable value in volatile environments. He
emphasized that in Nepal, where economic growth intersects with regulatory tightening, currency
fluctuations, geopolitical influences, climate-related exposures, and rapid digital adoption, effective risk
management has become a key differentiator for banks, microfinance institutions, insurance companies,
and investment firms.

Drawing from his hands-on experience, Mr. Neupane walked students through the major pillars of
modern risk management in the Nepali context. He began with credit risk—the dominant risk category
for most Nepali banks—explaining advanced assessment techniques such as internal rating-based (IRB)
approaches, probability of default (PD) modeling, loss given default (LGD) estimation, and exposure at
default (EAD) calculations. He shared real-world insights into how banks evaluate corporate, SME, retail,
and project finance portfolios, particularly under Nepal Rastra Bank’s Basel III-aligned directives, while
navigating challenges like information asymmetry, collateral valuation in illiquid markets, and
sector-specific concentrations (e.g., hydropower, tourism, agriculture).

The discussion naturally extended to market risk and liquidity risk, especially relevant for FMDM
students studying derivatives and fixed-income instruments. Mr. Neupane illustrated how banks measure
and manage interest rate risk, foreign exchange risk (given Nepal’s peg to the Indian rupee and
remittance-driven inflows), and equity/commodity exposures using tools like Value at Risk (VaR), stress
testing, and scenario analysis. He highlighted practical examples from Nepal’s bond market
developments, treasury operations, and the growing use of forward contracts and swaps by corporates
and institutions underscoring the need for robust limits, hedging strategies, and liquidity buffers amid
potential shocks.

Operational risk received significant attention, with Mr. Neupane addressing the rising threats of cyber
incidents, process failures, fraud (both internal and external), third-party dependencies, and
people-related risks in an increasingly digital banking environment. He connected these to Nepal-specific realities: regulatory emphasis on Business Continuity Planning (BCP), cybersecurity guidelines from NRB, and the human-factor challenges in a workforce transitioning to tech-enabled operations. Students gained appreciation for how operational risk frameworks integrate with enterprise risk management (ERM) to support overall governance and resilience.

A particularly engaging segment focused on the integration of risk management into strategic
decision-making. Mr. Neupane explained how forward-looking institutions use risk appetite statements,
key risk indicators (KRIs), risk-adjusted performance metrics (such as RAROC), and stress testing to inform capital allocation, product development, pricing, and business expansion. He encouraged FMDM
students to view risk professionals not as gatekeepers, but as strategic partners who help balance growth ambitions with prudent controls, especially vital in Nepal’s push toward financial inclusion, infrastructure financing, and green/sustainable finance.

The interactive portion allowed students to engage directly: group discussions analyzed anonymized
Nepali banking cases involving credit defaults during economic slowdowns, liquidity squeezes during
pandemic recovery, and emerging cyber threats. Mr. Neupane provided candid feedback, demonstrating
how risk dashboards, early-warning systems, and cross-functional committees drive timely interventions.

His credentials brought strong credibility: years of progressive experience in risk, credit, and treasury
functions at a major Nepali commercial bank, deep familiarity with NRB prudential norms, Basel
frameworks, and international risk standards, combined with a track record of mentoring young finance
professionals. This background made his insights highly relatable and actionable for MBA students
preparing for internships, placements, or further specialization in financial risk roles.

The session concluded with an open Q&A covering career pathways in risk management—certifications
like FRM, PRM, or CFA Risk & Portfolio Management modules; the value of rotational experience across
credit, market, and operational risk desks; and how to position risk expertise in interviews for banks,
NBFCs, regulators, or consulting firms. Students left with a clearer vision of risk management as both a
technical discipline and a leadership opportunity in Nepal’s financial ecosystem.

Embark College continues its commitment to bridging theory and practice through targeted guest
sessions. By inviting accomplished practitioners like Mr. Pragalv Neupane, the college ensures FMDM
MBA students graduate with not only advanced financial knowledge but also the practical risk
perspective needed to navigate uncertainty, protect value, and contribute meaningfully to Nepal’s
growing and increasingly sophisticated financial sector.