Affective aspects of risk management in banking industry
Kamran Hatami, Malihe Rostami
This article is done to discuss whether a financial institution or a bank use risk management models and techniques and which aspects of risk is more effective in risk management process. This is clear that all banks face with the risk in their operations that they are not able to eliminate it, but they can manage them. Banks must reduce their risks to continue activities. Therefore, it is important to identify and focus on risk aspects and consider them. In this study a modified questionnaire is used which its reliability and validity are examined. Four finding important aspects of risk management like as risk management perspective, risk identification, risk analyze and evaluation, risk monitoring, are discussed in prior studies and then expert opinions are surveyed. The population of this study was an Iranian bank. The results showed that risk monitoring variable had the most significant, direct and positive impact on the risk management variable. Also, there are positive and meaningful relations between risk analyze & evaluation, risk identification and risk management perspective as independent variables and risk variable as the dependent variable.