Your home is Your most important company: The cost of ignorance and the Risks of Financial Illiteracy
Financial literacy is often reduced to knowing about interest rates, loans, and basic banking terms. In reality, it is a much broader set of knowledge and habits that shape how we plan, make decisions, take risks, and bear consequences. If we view the household budget as a small company—with income, expenses, reserves, investments, and risks—it […]
AI and ML Risks: The New Role of the Risk Manager
Artificial Intelligence (AI) and Machine Learning (ML) are no longer a distant future—they are already part of business processes in banking, insurance, industry, and the public sector. They bring tremendous opportunities: better predictions, faster decisions, cost reductions, and the discovery of new patterns. But alongside these opportunities comes a whole new set of risks that […]
AI (Artificial Intelligence) and ML (Machine Learning): Mathematics and Risks
When reviewing the Global Risks Report from the World Economic Forum (Global Risks Report 2025 | World Economic Forum), it becomes clear that the global risks facing the world — and consequently every individual, whether a person or legal entity — are increasingly complex and interconnected. Among these, the newly emerging AI-related risks are becoming […]
Risk Culture-Key to Resilience and Long-Term Success
Why Risk Culture? Risk culture refers to the set of values, beliefs, knowledge, and behaviors within an organization that shape how its members perceive and manage risks. In a time of increasing regulatory complexity, rapid digitalization, and geopolitical instability, a strong risk culture is becoming a crucial factor for survival and development—both for financial institutions […]
CREDIT RISK MANAGEMENT – The banking basis for the stability and sustainable growth
Credit Risk is at the Core of Banking – Managing It Requires Structure, Process, and Discipline Credit risk management is a cornerstone of the risk management framework in banks. An effective credit risk framework not only ensures compliance with regulatory requirements but also directly influences asset quality, capital strength, and overall profitability. Today’s challenges – […]
MODEL AND MODEL RISK MANAGEMENT – A Key Discipline in Digitally Driven Banking
Models Provide Predictive Power – But Also Carry the Risk of Misguided Decisions. Model Risk Management Must Be Structured, Transparent, and Independent. In an era of increasing reliance on quantitative methods and algorithm-based decision-making, banks employ a wide range of models – from credit scoring and provisioning, to market and liquidity risk assessments, ICAAP calculations, […]
ICAAP & ILAAP PROGRAM
Key Pillars of Risk Management in the Banking System: ICAAP and ILAAP The Internal Capital Adequacy Assessment Process (ICAAP) and the Internal Liquidity Adequacy Assessment Process (ILAAP) are fundamental mechanisms for assessing banks’ capital and liquidity. These processes are crucial for capital and liquidity management, ensuring regulatory compliance, and providing guidelines for the bank’s long-term […]