The Perceived Relationship between Risk Culture and Operational Risk Management Practices of Ghanaian Banks

Gerhard Philip Maree Grebe () and Johan Marx
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Gerhard Philip Maree Grebe: Department of Finance, Risk Management and Banking, University of South Africa, 1 Preller Street, New Muckleneuk, Pretoria 0002, South Africa
Johan Marx: Department of Finance, Risk Management and Banking, University of South Africa, 1 Preller Street, New Muckleneuk, Pretoria 0002, South Africa

JRFM, 2023, vol. 16, issue 9, 1-22

Abstract: The Bank of Ghana (BoG) joined the Basel Consultative Group (BCG) of the Basel Committee on Banking Supervision (BCBS) in 2021 and is proceeding with the implementation of the Basel III international regulatory framework for Ghanaian banks. The purpose of this study was to assess the perceived relationship between risk culture and aspects of operational risk management among Ghanaian banks. This study followed a positivist paradigm and made use of a survey among the risk management staff members of Ghanaian banks. The data were analysed using both descriptive and inferential statistics, such as the Mann–Whitney U test and a multiple regression model. This study found significant perceived relationships (at the 5% level of significance) between risk culture and monitoring and reporting procedures, the three lines of defence (3LOD), compliance, internal auditing, disclosure of operational risk information, and guidance from the banking regulator. The respondents reported the following challenges with their banks’ risk culture (in order of priority): training and development, communication, reporting and disclosure, roles and responsibilities, performance appraisal, and technological and environmental barriers. Recommendations for addressing these challenges are provided.

Keywords: risk culture; operational risk management; banks; Ghana (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
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