Risk Culture, Risk Governance, and Balanced Incentives

November 6, 2016

The Global Risk Management Advisory Program of IFC’s Financial Institutions Group developed this handbook on how risk culture, governance, and incentive mechanisms within financial institutions impact risk management effectiveness and capability. The study aims to bring new insights to this subject for financial institutions in emerging markets, namely defining specific factors that are indicators of culture, governance, and incentives in an effective risk management framework; establishing a “maturity matrix” to benchmark these factors; and identify gaps.