Salim Batla

Who is Salim Batla?

Salim Batla, an investment manager turned risk manager is the founder of Implied Risk Calibration Theory. Implied Risk Calibration is a theory that attempts to mathematically explain the correlation between managing financial risks and the incremental risks that arise from such management.

He is a very vocal opponent of the concept of capital adequacy requirements stipulated by Basel Committee on Banking Supervision. His theory maintains that any attempt to reduce the solvency risk by increasing the equity component of balance sheet will invariably result in an equal or greater increase in the financial risk on asset side in a rational market thereby rendering the whole exercise useless and in some cases harmful.

Born in 1969 in Pakistan and later settled in Canada, Batla holds master degrees in economics, business administration and corporate law with a doctorate degree in financial risk management. He started his professional career in Pakistan where he held several senior level position in private as well as public sector. Batla served on the board of directors of major Pakistani companies and later appointed as Adviser to Government of Pakistan on corporate finance and investments during Gen. Pervez Musharraf’s regime. He simultaneously got attached to academic sector in Pakistan and taught in several universities as visiting faculty including National University of Science and Technology, Comsats University, Arid University Business School and Maastricht School of Management in Kuwait.