Better Risk Management of Banks and Sustainability - A Case Study in Vietnam

Abstract

Modern advanced bank risk management is a current and hot issue for all Vietnam banks, during the context of industry 4.0. Because of rapid economic growth under impacts of China-US commerce war and effects from Covid 19, as welll as industry 4.0, enhancing roles of banks in Vietnam economic development is becoming necessary. This paper also refers to new perspectives on corporate governance issues that can be applied into bank management. This study mainly use combination of quantitative methods and qualitative methods including synthesis, inductive and explanatory methods for a special case of big listed bank in Vietnam, Eximbank. The results show us that better management of bank need to forecast effects from GDP growth, Industrial manufacturing (IM) and Risk free rate (Rf) on both beta and stock price of Eximbank (EIB), in this case we found out there is positive relationship. Then, we can suggest suitable plans for risk management to enhance the bank roles and sustainable management strategies.

The Impact of Risk Disclosure on the Corporate Social Responsibility of Jordanian Banks

“…A bank's trading activities can also expose it to market risk. These activities can include the buying and selling of securities and currencies (Hang & Huy, 2021). Banks must ensure that they effectively manage market risk by monitoring their investment portfolios and making any changes that are necessary to avoid, or minimize any adverse impacts from market fluctuations.…”

“…Banks must ensure that they effectively manage market risk by monitoring their investment portfolios and making any changes that are necessary to avoid, or minimize any adverse impacts from market fluctuations. Banks use various methods to measure market risk, including Value at Risk (VaR), stress testing and scenario analysis (Hang & Huy, 2021;Probohudono et al, 2013).…”

“…Operational risk includes any risk as a result of fraud, cyber-attacks, natural disasters, and issues of regulatory compliance. Banks must manage operational risk by implementing strong internal controls, disaster recovery plans, and regular audits that are effective in identifying and addressing any potential vulnerabilities in the organization (Dai, Lu, & Qi, 2019;Hang & Huy, 2021;Probohudono et al, 2013).…”

“…Therefore, when interest rates rise, the value of a bank's assets may decrease, while the value of its liabilities may increase. Banks must manage interest rate risk by paying close attention to interest rate trends, adjusting their lending and investment strategies, and balancing their exposure to interest rate fluctuations (Dai et al, 2019;Hang & Huy, 2021).…”

Financial Risk Prediction and Analysis Based on Nonlinear Differential Equations

“…The chaotic state is sensitive to the initial finger and has the characteristics of universality and convenience [10]. The commonly used chaotic sequences include Logistic mapping, positive H mapping, Tent mapping, etc.…”