RICBL restructured to improve process, system and profitability

Restructuring, it’s envisioned, would help RICBL become one of the best organizations in the country

The Royal Insurance Corporation of Bhutan Limited (RICBL) has completed restructuring works of the organization in January this year by centralizing risk management and decentralizing operations.

The Chief Executive Officer (CEO) of RICBL, Karma, said all the operations will be now done in the field.

“Branch managers will be now responsible for the quality of Non-Performing Loan (NPLs) and profitability,” he said.

Currently RICBL have 25 branch managers.

The corporate office will now work on risk management, product development policy, auditing, and reconciliation and make pricings looking at the bigger picture.

Karma said the actual business management is done by the field officers – which is the big change for the company.

“With the restructuring process, every branch manager has his/her own target. Every branch manager has the target for both loans and insurance, and each one of them must work to meet the target and one of the most important targets is towards achieving the NPLs,” he said, adding that every branch has its annual target in terms of profit because of the decentralization now.

“Now the loan has to be sourced and business development has to be done in the field by the office,” he added.

According to the CEO, RICBL is building a partnership between the clients and company, where the common interest is the investment.

“Decentralization, reorganization is very powerful; as a result of decentralization we have created two new divisions called the risk management and company’s corporate strategy and research development,” the CEO Karma.

The Risk Management Division (RMD) will monitor all the risk indicators as each business line has a set of risk indicators. Every department or business line will report on the risk indicators to the RMD on a monthly basis.

RICBL has also formed a board level Risk Management Committee, where board directors and CEO as members discuss all the bigger risks deemed by the management committee.

“We hope that the changes will strengthen the institution in future. We are excited about the output of the reorganization which took place from January 2019 and this has been worked for many months by our senior group of people. And they are trying to place the right person at the right position,” Karma said.

The CEO added that he wants to grow RICBL into an organization where honest and hardworking people thrive. He also said that they have initiated the culture of openness.

“Branch manager has to assess their customers before working with them and once they start working with them, they must best partner with them,” the CEO said.

Dechen Dolkar from Thimphu