RISK MANAGEMENT IN FINANCIAL INSTITUTIONS: A COMPREHENSIVE REVIEW

Abstract

This paper provides a comprehensive review of risk management practices in financial institutions, focusing on the evolution of risk management, types of risks faced by institutions, frameworks and approaches to risk management, and implementation challenges. It discusses the historical perspectives that have shaped risk management, including major events and regulatory responses. The paper also examines current and future trends in risk management, such as technological innovations, regulatory changes, and globalization. The findings highlight the importance of effective risk governance, risk identification and assessment, risk mitigation strategies, and monitoring and reporting mechanisms. The paper concludes with recommendations for future research in risk management for financial institutions.