Banking Risk Management and Control: An Applied Study at Al-Rasheed Bank of Iraq

Understanding, assessing, and managing risks are crucial to the success, growth, and achievement of objectives by Iraqi banks. Although taking risks is intended to generate higher returns, failing to manage these risks correctly and scientifically may result in the loss of such returns and the inability to achieve banks' strategic goals, particularly in the context of global economic trends towards financial globalization. The research problem is therefore encapsulated by the following main question: Does banking risk management affect the overall performance of Al-Rasheed Bank in Iraq? This research is important because it highlights the essential role of encouraging the application and control of banking risk management mechanisms within banks. The research aims to identify the types and characteristics of banking risks, and to examine the strategies adopted by the sample bank to mitigate the negative impacts of these risks, as well as the extent to which it complies with risk management requirements. The study is based on the hypothesis that effective risk management is a key factor in the success of banks and in achieving their objectives. The study's key findings indicate that banks must continuously analyse and identify various types of risk, determine their magnitude, and assess their likelihood. A bank's success in addressing liquidity risks depends on the accuracy of risk measurement data. The main recommendations emphasise the importance of adopting a general framework for liquidity risk management that ensures adequate liquidity is available to support banking operations, thereby guaranteeing the bank’s continuity in the market.