Padmini Bulani, a distinguished Chartered Accountant and Financial Risk Manager (FRM), has carved out an impressive niche for herself as an expert in liquidity and funding risk management. With 14 years of experience across Global Systemically Important Banks (G-SIBs) and Domestic Systemically Important Banks (D-SIBs), her career reflects a blend of technical expertise and strategic insight.

Her dual qualifications as a CA and FRM enable her to merge detailed financial analysis with comprehensive risk management frameworks. Padmini’s passion for financial risk management is rooted in her profound understanding of banking regulations and market dynamics. Reflecting on her journey, she emphasizes, "The interplay between market conditions, regulations, and institutional priorities requires a systematic and adaptable approach. Managing liquidity risk is not just about compliance; it's about safeguarding resilience."

Throughout her career, Padmini has demonstrated an ability to lead complex initiatives and facilitate strategic decision-making. Her approach is defined by a methodical evaluation of risk metrics, rigorous stress testing, and the implementation of robust monitoring frameworks. “Risk management is not about reacting to crises—it’s about anticipating them. By integrating scalable and sustainable solutions, institutions can ensure they are prepared to navigate evolving market conditions,” she explains.

Padmini’s insights are particularly relevant in the context of recent financial events, such as the liquidity crises faced by several U.S. banks and Credit Suisse in 2023. These events highlighted the vulnerabilities arising from poor interest rate and liquidity risk management. Padmini underscores the importance of diversification and robust preparation, stating, “Banks need a range of liquidity options that can withstand diverse conditions. Adapting to a high-interest-rate environment requires vigilance, agility, and a commitment to stress-testing under severe shocks.”

Reflecting on the challenges faced by modern financial institutions, Padmini points to the evolving nature of liquidity risk. She notes that risk managers must not only measure liquidity but also model every possible scenario that could impact a bank’s overall liquidity profile. “Events like the COVID-19 pandemic and the 2023 regional banking crisis show how unexpected factors can severely affect liquidity. Comprehensive stress testing could have provided a clearer picture, helping institutions prepare for even the most unforeseen challenges,” she adds.

Looking ahead, Padmini sees exciting potential in the evolution of risk management practices and regulatory frameworks. She envisions significant advancements that will reshape how financial institutions manage risks and optimize operations. “The future of financial risk management lies in innovation and adaptability. As institutions embrace advanced technologies and refine their strategies, we’ll see a paradigm shift in how risks are identified and mitigated,” she observes.

Padmini’s career is a testament to her dedication to excellence and innovation. Her ability to lead, mentor, and inspire has not only driven significant improvements in risk management but also paved the way for the next generation of finance professionals. "Success in risk management is not just about individual achievement; it’s about fostering a culture of continuous learning and collaboration," she concludes.

With her unwavering focus on innovation and her commitment to process optimization, Padmini Bulani continues to shape the future of liquidity risk management, ensuring that financial institutions remain resilient in an ever-changing global landscape.