A note on contemporary literature of risk and risk management in banking

Risk has been defined by numerous of forms by the current researchers when relating it to financial services. In this paper, we investigate different definitions of risk and risk management using qualitative analysis given by the previous authors in the past decades and how the financial institutions are using them to manage their risk. A financial institution risk management is not only dependent on how the shocks are spreading or spilling over to other institutions, but it also depends on how much of the risk can we decrease in the first place by using internal control mechanism. Keeping these in mind, our discussion from the qualitative analysis is used to create a modern framework for internal risk management for individual financial institutions.