RISK MAPPING AS A FORM OF BANKING IMMUNITY RESPONSE TO COVID-19 PANDEMIC

Abstract

Climate change and technological innovation expose banks to “new risks.” The COVID-19 pandemic has accelerated and amplified these effects. This paper investigates how the traditional tool of the risk map can incorporate these “new risks” for banks. We develop the configuration of the risk map under the influence of the COVID-19 pandemic in the context of economy digitalization for an anonymous Bank X. We show that the risk map is still a useful tool for identifying risks in banks, appreciable for its simplicity and adaptability especially in evolving contexts. The main contribution is the construction of a methodological framework that is useful for operators and provides banking industry decision makers with a supporting tool to adequately respond to the changing environment.

Keywords

• Risk management
• risk map
• banking industry
• COVID-19 response