The Importance Of Risk Management In Banking Organizations

Risk management

Risks are everywhere, but the problem is how organizations assess, control and finance them. It is an advantage to foresee and calculate risks to manage it properly in an organization because it may become critically important in today’s challenging economic times. According to Reuvid (2010), risk management has multiple benefits and makes good business sense which led managers to make good investments, protect them more confidently and have a lower cost of risk, but have a greater chance of reaching strategies objective.

Organizations that manage and oversee risks appreciate a 'righteous circle' with regards to the relationship with underwriters. By controlling risks and diminishing interior costs, organizations can appreciate

At the point when the reports that managers present to stakeholders contain errors, false and deceptive or deliberately misleading or fail to disclose important information or fail to conform to regulation, it implies that there were existing issues. Tunji (2013) state: “The only solution to resolve this problem is by appointing an independent person, called internal controller or internal auditor, to investigate the report and bring out his findings. To help the independent auditor to be able to carry out his work in an orderly and efficient manner, he must be guided by some rules and regulations, which serve as the benchmark of practice in the company. These rules, which shall be established by the management, are to ensure that records are kept properly and can be relied upon so as to prevent or detect frauds and other anomalies that can derail operation or even bring an end to the business”. Management should layout the process and procedures of how business should be done including conditions/ policies of the organization, these will be used by auditors as the standard of the business running. The standards are according to the standard to see if the implementation of work is according to the

But having a code of ethics in an organization does not mean that everyone will articulate them because it does not conform to their belief or for others it is sometimes difficult to articulate and assess the problem. Or sometimes people build a framework, as they grow up and mature depending on life circumstances and event people come across with or things they have seen. According to Pope (2015), no one is perfect, every time when it is about ethics and principles we all fall short, we face a risky moment of weakness and the temptation to reinterpret, to defend our unethical acts to others and ourselves when it is