Determinants Affecting the Effectiveness of Risk Management of Commercial Banks in Dong Nai Province

Abstract

Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risk management’s objective is to assure uncertainty does not deflect the endeavor from the business goals. The objectives of this study are to identify the factors that affecting the effectiveness of risk management of commercial banks in Dong Nai province. The data analysis for this study is a quantitative type. Moreover, the results provided an insight of the effectiveness of risk management from 350 customers related to commercial banks in Dong Nai province. The regression analysis result showed that there were five factors that included of factors following the procedure (Pr), the communication (Co), the technology (Te), the Human Resource development (Hr) and the organization structure (Or) affecting the effectiveness of risk management of commercial banks in Dong Nai province with significance level of five percent. In addition, the study results showed that there were 350 customers who interviewed and answered about 29 questions. The Data collected from November 2016 to April 2017. This study had been analyzed Cronbach’s Alpha, KMO testing and the result of KMO testing used for the research method of the regression. Customers’ responses measured through an adapted questionnaire on a 5-point Likert scale following; conventions: 1: Completely disagree, 2: Disagree, 3: Normal; 4: Agree; 5: completely agree. Hard copy and online questionnaire distributed among 50.500 customers of the commercial banks.

Keywords: Commercial Banks, Customers, LHU, Risk Management


Article Review Status: Published

Pages: 48-62 (Download PDF)

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