The important role that an effective risk management system plays in ensuring banks’ profitability and continuity is widely proven. The Basel II guidelines, which will soon be applied internationally requires that banks and other financial institutions have a comprehensive risk management...

This paper investigates the factors influencing banks' decision to engage in advanced risk management, from both a theoretical and an empirical perspective. In recent decades, credit risk management in banks has become highly sophisticated and banks have become more active and advanced in the...