RISK CULTURE IN BULGARIAN BANKING SECTOR – A VISION FOR THE FUTURE
Abstract
Setting up an effective risk culture is one of the most important post-crisis tasks of banking management. In order to solve it, the bank management bodies should take a number of measures – setting the „tone at the top“, establishing risk-competent and coordinated organizational-structural units, developing mechanisms for "implanting" the desired risk consciousness among all staff. A survey conducted among banks in Bulgaria shows how much they are already taking steps in this direction. On the basis of the most significant problems identified in the study, there is a need to undertake measures in three aspects: performing structural and process optimization of risk management; increasing the effectiveness of the work of risk instances; encouraging commitment and integrity of banking staff to risk issues.
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References
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