Corporate Risk Management Strategies in the Banking Industry: Traditional vs. Developing Risk Management Procedures

Abstract

In the banking industry, risk management is a crucial function that protects financial institutions' stability and resilience in the face of operational and regulatory uncertainty. In order to lower risks in the banking industry, this study compares the relative efficacy of traditional and new risk management procedures. Quantitative data were collected from 230 respondents, including banking professionals, risk analysts, and financial managers. This study examines the preference for and effects of these strategies on operational efficiency, regulatory compliance, and risk mitigation. Findings indicate that although traditional strategies ensure reliability, the implementation of procedures like AI-driven risk modeling and predictive analytics enhances adaptability and precision. The paper concludes with recommendations for a hybrid approach aimed at enhancing risk management efficiency within the dynamic banking environment.