Value at Risk in Banks on the Financial Digitalization Phenomenon
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 12
Abstract
The purpose of this research is to measure risk, understand the function of risk management, and understand the effectiveness of implementing risk management in banks post the Covid-19 pandemic and the phenomenon of financial digitalization. The objects used in this research are banking companies listed on the Indonesia Stock Exchange during the research period 2020-2022. This research uses a sample of 42 banks are selected using a purposive sampling method. The research method used is measuring value at risk (VaR) using the historical simulation method. The results of the research show that the five banks that have the lowest level of risk are banks in the book IV category. The application of banking risk management to financial digitalization requires adaptability, innovation and inter-departmental cooperation. With a good approach, banks can mitigate emerging risks while optimizing the benefits of digital transformation in financial services.
Authors and Affiliations
Yesi Lestari, Ignatius Roni Setyawan
Keywords
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- EP ID EP729653
- DOI 10.47191/jefms/v6-i12-20
- Views 47
- Downloads 0
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