Abstract:

This study examines risk management approaches amongst commercial banks in Guyana's banking sector by examining senior-level bank managers' perception of commercial banks' approach to managing operational, financial and credit risks. Amidst the many challenges the global banking industry must navigate, including the lingering effects of the 2008 global financial crisis on emerging economies such as Guyana, this mixed methods study aims to fill the gap in the lack of research, particularly concerning Guyana's commercial banking industry. The study evaluates current risk management policies and practices and how effective they are compared to international standards. The study also proposes to examine the competencies of personnel with direct responsibilities and oversights for managing risks within the banks, as well as the influence of external dynamics such as global financial trends. Employing a combination of semi-structured interviews, and likert scale surveys, Likert draws on quantitative insights from those leading risk management efforts in the banking system to garner a nuanced understanding of the issue.

References:

[1].   Abrahim, S., Mir, B. A., Suhara, H., Mohamed, F. A., & Sato, M., 2019, Structural equation modeling and confirmatory factor analysis of social media use and education. International Journal of Educational Technology in Higher Education, 16(32), 1-25. https://doi.org/10.1186/s41239-019-0157-y

[2].   Adeusi, S. O., Akeke, N. I., Adebisi, O. S., & Oladunjoye, O., 2014, Risk management and financial performance of banks in Nigeria. Risk Management, 6(31), 115-128. https://doi.org/10.5430/ijfr.v11n5p115

[3].   Alam, M. D. Z., & Masukujjaman, M. D., 2011, Risk management practices: A critical diagnosis of some selected commercial banks in Bangladesh. Journal of Business and Technology (Dhaka), 6(1), 15-35. https://doi.org/10.3329/jbt.v6i1.9992

[4].   Al-Tamimi, H. A., & Al-Mazrooei, F. M., 2007, Banks’ risk management: A comparison study of UAE national and foreign banks. The Journal of Risk Finance, 8, 394-409. https://doi.org/10.1108/15265940710777333

[5].   Bank of International Settlements, 2018, Structural changes in banking after the crisis. Report prepared by a Working Group established by the Committee on the Global Financial System. CGFS Papers No 60.

[6].   Bell, E., Bryman, A., & Harley, B., 2022, Business Research Methods. Oxford University Press, Oxford.

[7].   Creswell, J. W., & Creswell, J. D., 2018, Research design (5th ed.). SAGE Publications.

[8].   DaCosta, M., 2020, Bank risk management in Guyana: A summary. Guyana Economic Analysis Group. Retrieved from https://geagonline.org/bank-risk-management-in-guyana-a-summary/

[9].   Dabbas, M. M., 2023, Banking risk management in Jordanian commercial banks in accordance with the Basel Accords. International Journal of Professional Business Review, 8(6). https://doi.org/10.26668/businessreview/2023.v8i6.2420

[10].  Fraenkel, J. R., & Wallen, N. E., 2010, How to design and evaluate research in education (7th ed.). New York, NY: McGraw-Hill.

[11].  Habib, S., Masood, H., Hassan, T. S., Mubin, M., & Baig, U., 2014, Operational risk management in corporate and banking sector of Pakistan. IISTE Journal, 4(5), 58-66. http://dx.doi.org/10.2139/ssrn.2663415

[12].  Imbierowicz, B., & Rauch, C., 2014, The relationship between liquidity risk and credit risk in banks. Journal of Banking and Finance, 40(1), 242-256.

[13].  Jadwani, B., Parkhi, S., & Mitra, P. K., 2024, Operational risk management in banks: A bibliometric analysis and opportunities for future research. Journal of Risk and Financial Management, 17(3), Article 95. https://doi.org/10.3390/jrfm17030095

[14].  Kattel, I. K., 2016, Evaluating the credit risk measurement practices of commercial banks in Nepal. Journal of Business and Management, 18(3), 82-91. https://doi.org/10.2139/ssrn.2663415

[15].  Kolapo, F. T., Ayeni, K. R., & Oke, O. M., 2012, Credit risk and commercial banks' performance in Nigeria: A panel model approach. Australian Journal of Business and Management Research, 2, 31-38.

[16].  Lysiak, L., Masiuk, I., Chynchyk, A., Yudina, O., Olshanskiy, O., & Shevchenko, V., 2022, Banking risks in the asset and liability management system. Journal of Risk and Financial Management, 15(6), 265. https://doi.org/10.3390/jrfm15060265

[17].  Makransky, G., & Lilleholt, L. A., 2018, Structural equation modeling investigation of the emotional value of immersive virtual reality in education. Education Tech Research Dev, 66, 1141–1164. https://doi.org/10.1007/s11423-018-9581-2

[18].  Nazir, M. S., Daniel, A., & Nawaz, M. M., 2012, Risk management practices: A comparison of conventional and Islamic banks in Pakistan. American Journal of Scientific Research, 68, 14-22.

[19].  Onyiriuba, L., 2016, Bank operational risk dynamics and management in developing economies. Bank Risk Management in Developing Economies, 537–547. https://doi.org/10.1016/b978-0-12-805479-6.00027-4

[20].  Robertson, D., 2016, Introduction to operational risk. In Managing operational risk. Palgrave Macmillan. https://doi.org/10.1007/978-1-137-44217-8_1

[21].  Saeed, M. S., & Zahid, N., 2016, The impact of credit risk on profitability of the commercial banks. Journal of Business & Financial Affairs, 5(2), 2167-0234. https://doi.org/10.4172/2167-0234.1000192

[22].  Shah, A., 2017, The politics of financial risk, audit and regulation: A case study of HBOS. Routledge. https://doi.org/10.4324/9781138042353

[23].  Takehira, R., Murakami, K., Katayama, S., Nishizawa, K., & Yamamura, S., 2011, A Structural Equation Model (SEM) for Pharmacist Competencies in Improving Quality of Life of Cancer Patients: Effect of Missing Values on the SEM. Pharmacology & Pharmacy, 2, 226-232. https://doi.org/10.4236/pp.2011.23031

[24].  Tian, Y., Li, K., & Shi, Y., 2015, Big data analysis for financial risk management. Journal of Big Data, 2(1), 1-12. https://doi.org/10.1186/s40537-016-0053-4

[25].  Williams, M., Wiggins, R., Vogt, W. P., & Vogt, P. R., 2022, Beginning quantitative research. SAGE Publications.

[26].  Wood, A., & Kellman, A., 2013, Risk management practices by Barbadian banks. International Journal of Business and Social Research, 3(5), 22-29. https://doi.org/10.18533/ijbsr.v3i5.3