Risk Management Capacity at Banks: Study at Vietnam Commercial Banks

The financial market has many risks, so risk management and improving risk management capacity are always the top concerns in the operations of commercial banks. In addition, globalization and the increasing innovation of the banking system are making the activities of the banking system in the world and in Vietnam increasingly risky and complex. The Industrial Revolution 4.0 has affected all economic activities globally. It brings many important technology applications that facilitate the process of monitoring and managing risk in the fields of finance and banking. The transformation in the banking system applying technology has posed significant challenges in operating the use of technology, personnel, etc. The article adopts a systematic, qualitative method to analyze the types of risks, points out the current status of risk management, and proposes a number of solutions to improve risk management capacity to help commercial banks operate their businesses effectively and safely.