Banking Risk management In Commercial Banks

The banking sector is among the most high-risk industries, and in recent years, these risks have not only grown but also shifted in nature. While credit risks used to dominate concerns about stability, banks now face significant challenges such as market fluctuations, liquidity crises, interest rate volatility, and strategic threats. This evolving landscape emphasizes the need for advanced risk management systems, especially as many banks increasingly engage in high-risk financial activities. To safeguard their assets and profitability, institutions must adopt measures that proactively minimize potential losses—whether those arise from external factors, human errors, or legal rulings. For Iraqi banks in particular, it is critical to implement comprehensive systems that evaluate and address all forms of risk while ensuring regular updates to adapt to changes in the financial environment.