Relationship between Risk Types and Risk Management in Banking

Abstract

Banks fulfill important functions in an economy in the fields of trading markets, operating businesses, growing the economy, developing foreign trade and implementing long-term economic policies. In this context, banks not only fulfill important financial functions but also have important roles in the efficient development of the economy, in achieving the goals of businesses, in making new investments, and in ensuring the sustainability of investments made. For this reason, public or private banks must be able to foresee possible risks, the legal infrastructure in this regard must be harmonized by public institutions and the necessary corrective measures must be taken in cooperation with the relevant parties. In bank-related transactions, the protection of banks against risks, their profitability and the precautions to be taken are of great importance in order to provide the most appropriate and economical type of loans to the applicants. Therefore, this study; was  planned with the thought that scientific examination of the issues related to risk risk types and risk management relationships could be beneficial to researchers, businesses, public institutions and related parties.