RISK MANAGEMENT IN BANKING OPERATIONS

Abstract

This review paper aims to explore the various aspects of risk management in banking operations, focusing on strategies, challenges, and best practices in mitigating risks within the banking sector. The paper discusses key theoretical concepts and frameworks related to risk management in banking, including Basel III regulations, risk assessment models, and the role of technology in enhancing risk management processes. A comprehensive literature review is conducted to analyze the current state of risk management practices in banking operations. Various research studies, industry reports, and regulatory guidelines are examined to provide a holistic understanding of the subject. The findings highlight the importance of effective risk management strategies in ensuring the stability and resilience of banking institutions. Key findings include the significance of risk identification, measurement, monitoring, and mitigation techniques in managing operational, credit, market, and liquidity risks. This paper contributes to the existing body of knowledge by offering insights into the evolving landscape of risk management in banking operations. The research findings have practical implications for banks in improving their risk management frameworks and addressing emerging challenges. Socially, effective risk management practices contribute to financial stability and trust in the banking sector. The paper provides a comprehensive analysis of risk management practices specific to banking operations, highlighting the evolving regulatory landscape, technological advancements, and emerging trends that impact risk management strategies. The originality lies in synthesizing diverse literature sources to offer valuable insights and practical recommendations for risk managers and policymakers.