Risk Management in Banking: Frameworks, Regulation, and Practice

This comprehensive guide provides a structured and practical introduction to modern risk management in banking, aligned with global regulatory standards and industry best practices. Designed for students, risk professionals, auditors, regulators, and banking executives, the book covers the full spectrum of financial and non-financial risks faced by today’s institutions in an increasingly complex and volatile environment.

Beginning with the foundations of enterprise risk management, governance, and risk culture, the book systematically examines the core risk types: credit, market, liquidity, interest rate risk in the banking book (IRRBB), capital adequacy and ICAAP, operational, cyber and technology, conduct and compliance, and climate-related risks. Each chapter explains key concepts, regulatory expectations, risk measurement techniques, stress testing approaches, and control frameworks in clear, accessible language.

The final section focuses on emerging risks and the future of risk management, including digital transformation, fintech, artificial intelligence, geopolitical uncertainty, and systemic risk. Emphasis is placed on forward-looking supervision, integrated risk frameworks, and the evolving role of the risk function in supporting strategic decision-making and financial resilience.

Combining theoretical foundations with practical insights, this book serves as both a learning resource and a reference manual for building a strong, forward-looking risk management framework in banks and financial institutions