Risk management and capital adequacy

Over the past decades, investors, regulators, and industry self-regulatory bodies have forced banks, other financial institutions, and insurance companies to develop organizational structures and processes for the management of credit, market, and operational risk. Risk management became a hot topic for many institutions, as a means of increasing shareholder value and demonstrating the willingness and capability of top management to handle this issue. In most financial organizations, risk management is mainly understood as the job area of the chief risk officer and is limited, for the most part, to market risks. The credit risk officer usually takes care of credit risk issues. Both areas are supervised at the board level by separate competence and reporting lines and separate directives. More and more instruments, strategies, and structured services have combined the profile characteristics
of credit and market risk, but most management concepts treat the different parts of risk management separately. Only a few institutions have started to develop an overall risk management approach, with the aim of quantifying the overall risk exposures of the company.

Từ khóa: Risk management, capital adequacy, financial institutions, tổ chức tài chính, quản trị rủi lo, kinh tế tài chính