Risk Culture, Risk Governance, and Balanced Incentives : Recommendations for Strengthening Risk Management in Emerging Market Banks
The International Finance Corporation (IFC), as a member of the World Bank, believes that sound, inclusive, and sustainable financial markets are essential to building shared prosperity and ending extreme poverty. Access to finance is a key barrier...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/690631481600528687/Risk-culture-risk-governance-and-balanced-incentives-recommendations-for-strengthening-risk-management-in-emerging-market-banks http://hdl.handle.net/10986/25790 |
| Summary: | The International Finance Corporation
(IFC), as a member of the World Bank, believes that sound,
inclusive, and sustainable financial markets are essential
to building shared prosperity and ending extreme poverty.
Access to finance is a key barrier to the growth of Small
and Medium Enterprises (SMEs) and the establishment of
micro-enterprises. The access to finance gap in emerging
markets is large, 2 billion adults do not have access to
savings or credit, while 200 million micro, small, and
medium enterprises (MSMEs) do not have access to credit.
Working through financial intermediaries enables IFC to
encourage them to become more involved in sectors which are
strategic priorities such as women-owned businesses, climate
change, and agriculture and in underserved regions such as
fragile and conflict-affected states as well as in housing,
manufacturing, infrastructure, and social services. Our work
with these clients has supported an estimated 100 million
jobs. Through its Advisory Services, IFC has also scaled up
the sustainable provision of financial services in
developing countries by addressing systemic issues such as
credit information and credit bureaus, improvements in risk
management, corporate governance, and the introduction of
environmental and social standards. The approaches provided
in this handbook are complementary to a bank’s existing risk
management practices and framework and can provide a useful
tool and guide for banks to further improve the
effectiveness of their risk management activities. In risk
management, there cannot be a ‘one size fits all’ solution,
and therefore recommendations provided should be tailored to
fit each bank’s size, complexity of business, and any other
rules, regulations, and guidelines provided by the bank’s regulator. |
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