Behavioral Risk and Human Error in Banking
Behavioral Risk and Human Error in Banking

Author(s): Stefania Veneva
Subject(s): Social Sciences, Economy, Psychology, Business Economy / Management, Behaviorism, Financial Markets, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: behavioral risk; human error; operational risk; banking culture; risk governance
Summary/Abstract: This paper examines behavioral risk and human error in the banking sector, integrating psychological frameworks, organizational analysis, and empirical data to assess the scale, drivers, and mitigation measures. The research synthesizes supervisory and industry reports, operational loss databases, and high-profile case studies (e.g., Barings Bank, Wells Fargo) to demonstrate how cognitive biases, incentive structures, and weak controls lead to financial losses and reputational harm. Policy and managerial recommendations are provided to embed behavioral insights within risk frameworks. (Sources: EBA, ORX, Reuters, BIS.)

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