Implementation of comprehensive risk culture development programs in banking institutions

Posted: Apr 01, 2024

• Prof. Chloe Dubois
• Prof. Chloe Gonzalez
• Prof. Chloe Mehta

Abstract

This research presents a novel computational framework for implementing comprehensive risk culture development programs in banking institutions, addressing the critical gap between theoretical risk management protocols and practical organizational implementation. Traditional approaches to risk culture have predominantly relied on qualitative assessments and compliance-driven frameworks, lacking the quantitative rigor and predictive capabilities necessary for proactive risk mitigation. Our methodology introduces a hybrid computational-psychological model that integrates natural language processing of internal communications, social network analysis of organizational hierarchies, and behavioral economics principles to create a multidimensional risk culture assessment tool. The framework employs machine learning algorithms to identify latent risk behaviors and predict cultural vulnerabilities before they manifest as operational failures. We implemented this approach across three major banking institutions over an 18-month period, collecting data from over 15,000 employees through digital interactions, survey responses, and performance metrics. Our results demonstrate a 67