Risk Management Practices in the Chilean Banking Sector: A Comparative Analysis

Abstract

This article conducts a comparative analysis of risk management practices within the Chilean banking sector, focusing on the effectiveness and robustness of different banks' approaches to mitigating financial and operational risks. It examines key components of risk management frameworks, including credit risk, market risk, liquidity risk, and operational risk, while considering the regulatory environment shaped by the Chilean government and international standards. The research employs qualitative and quantitative methods to evaluate how various banking institutions implement risk management strategies and the outcomes of these practices on financial stability. Findings highlight significant differences in risk management practices among banks, influenced by factors such as size, ownership structure, and market positioning. The article concludes by recommending best practices and strategies for enhancing risk management frameworks to ensure resilience in an increasingly complex financial landscape.