Assessment of risk culture and risk-taking behavior among frontline managers of Sepah Bank branches

Document Type : Original Article

Authors

1 Department of Public Management, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran.

2 Department of Accounting, Faculty of Management and Accounting, Allameh Tabataba'i University, Tehran, Iran.

3 Department of Sociology, Faculty of Humanities and Social Sciences, Science and Research Unit, Islamic Azad University, Tehran, Iran.

Abstract
Purpose: The objective of this study is to assess the maturity level of risk culture and the risk-taking behavior of frontline managers at Sepah Bank, employing the Financial Stability Board's framework. Using quantitative tools and statistical analysis, this research aims to identify strengths and weaknesses within the risk culture and risk-taking levels across branches. The findings provide insights to improve authority distribution and strengthen the organizational risk culture at Sepah Bank, aiding managers and decision-makers in shaping effective management policies and fostering a resilient organizational culture.
Methodology: The research follows a positivist philosophy and adopts a quantitative, inductive approach. The analysis used a t-test and Structural Equation Modeling (SEM). Data were collected through two questionnaires, yielding 4,049 valid responses from Sepah Bank branches. These responses were analyzed using SPSS and SmartPLS to effectively evaluate and interpret the data.
Findings: The findings of this research indicate that the overall risk culture maturity score in Sepah Bank's branch operations was slightly below average, with a mean score of 2.43 on a 1-to-5 scale, suggesting areas for improvement. In terms of risk-taking behavior, frontline managers scored an average of 4.9 out of 11, reflecting a relatively cautious approach to risk within the organization. Additionally, an analysis of the relationship between demographic characteristics and risk-taking behavior revealed significant correlations, suggesting that factors such as age, experience, and educational background influence managers' willingness to engage in risk. These findings highlight key areas for intervention to enhance both risk culture and adaptive risk management practices.
Originality/Value: This research is original and valuable because it assesses risk culture and risk-taking behavior among frontline managers at Sepah Bank using the Financial Stability Board framework. The study provides practical insights for improving the distribution of authority within Sepah Bank branches.

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