Validating a risk culture instrument for the banking sector in South Africa

Abstract

Compliance failures remain a big challenge within the financial services sector, despite various regulatory reforms after the 2008 global financial crisis. However, risk culture, a key consideration in sound risk management, remains poorly measured in South African banks, even though banking institutions acknowledge its importance. This study followed a quantitative survey approach, whereby one prominent South African bank was selected to validate a risk culture instrument. The study aims to develop a comprehensive risk culture instrument and carry out a validation process that measures risk culture accurately within banking institutions. A sample of 379 employees in the risk field completed a questionnaire containing 46 closed-ended items. The instrument was found to have six distinct constructs that measure risk culture. Using exploratory and confirmatory factor analysis, the constructs were validated as reliable and valid measures of risk culture in a bank. This means future researchers could use this instrument to further research the influence of risk culture on an organisation’s performance and success. This valid and reliable research tool enables managers in financial institutions to accurately measure risk culture constructs in order to make well-informed risk management decisions. Banks can thus enhance their risk culture through effective communication, good governance, employee incentives, competencies, compliance with regulations, and enhanced controls to mitigate risks.

U kundelwa u tevhedza zwi kha ḓi vha khaedu khulwane kha sekithara ya tshumelo ya masheleni, naho hu na tshanduko dzo fhambanaho dza ndaulo nga murahu ha dziedzi ya zwa masheleni ya dzhango ya 2008. Fhedzi, mvelele ya khohakhombo ndi tshithu tsha ndeme tshine tsha tea u dzhielwa nṱha kha ndangulo ya khohakhombo i pfadzaho, i dzula yo elwa lu sa pfadzi kha bannga dza ḽa Afrika Tshipembe, naho zwiimiswa zwa u bannga zwi tshi dzhiela nṱha ndeme yayo. Ngudo i tevhedza maitele a ṱhoḓisiso dza khwanṱhithethivi, hune bannga nthihi khulwane ya Afrika Tshipembe yo nangiwa u khwaṱhisedza tshishumiswa tsha mvelele ya khohakhombo. Ngudo dzo pika u bveledza tshiimiswa nyangaredzi tsha mvelele ya khohakhombo na u bveledza maitele a u khwaṱhisedza ane a ela mvelele ya khohakhombo zwavhuḓi nga ngomu kha zwiimiswa zwa dzibannga. Tsumbonanguludzwa ya vhashumi vha 379 vha re kha zwa khohakhombo vho ḓadza mbudzisombekanywa dzi re na mbudziso dza 46 dza phindulo nthihinthihi. Tshishumiswa tsho wanala tshi na miṱalukanyo ya rathi yo fhambanaho ya u ela mvelele ya khohakhombo. Musi hu khou shumiswa musaukanyo wa u sedzulusa, miṱalukanyo yo khwaṱhisedzwa sa ya vhukuma nahone yo teaho u itela maga a mvelele ya khohakhombo banngani. Hezwi zwi amba uri vhaṱoḓisisi vha nga shumisa tshishumiswa itshi kha ṱhoḓisiso u vhona ṱhuṱhuwedzo ya mvelele ya khohakhombo kha kushumele na u bvelela ha dzangano. Tshishumiswa tsho teaho tsha vhukuma tsha ṱhoḓisiso tshi konisa vhalanguli kha zwiimiswa zwa masheleni uri vha kone u ela zwavhuḓi miṱalukanyo ya mvelele ya khohakhombo u itela u dzhia tsheo dzo dziaho dza ndangulo ya khombo. Dzibannga dzi a kona u khwaṱhisedza mvelele yadzo ya khohakhombo nga kha vhudavhidzani vhu vhuedzaho, vhuvhusi havhuḓi, magavhelo a vhashumi, vhukoni, u tevhedza ndaulo na ndango dzo khwaṱhisedzwaho u itela u fhungudza khohakhombo.

Go palelwa ke go obamela melao go tswelela go nna sekgoreletsi se segolo mo lephateng la ditirelo tsa matlole le fa ga jaana go tlhamilwe melao ya taolo e e mmalwa morago ga mathata a matlole a a neng a ama lefatshe lotlhe a 2008. Le fa go le jaana, botlhokomedi jwa kotsi joo e leng ntlha ya kakanyetso e e botlhokwa mo botsamaising jwa kotsi, bo tswelela go ka lekanyetswa kwa ntle le tshiamo mo dibankeng tsa Aforika Borwa, le fa e le gore dibanka di lemoga botlhokwa jwa jone. Dithuto tse di dirisitse mokgwa wa patlisisobontsi moo nngwe ya dibanka tse di tlhomologileng mo Aforika Borwa e neng e tlhophilwe go ka netefatsa sediriswa sa botlhokomedi jwa kotsi. Maikaelelo a dithuto tse ke go tlhama sediriswa se sa botlhokomedi jwa kotsi se se akaretsang mme gape se tsamaise thulaganyo ya go netefatsa eo e lekanyang ka tlhomamo botlhokomedi jwa kotsi ka fa ditheong tsa go banka. Sampole e ne ya tsewa ya badiri ba ba 379 bao ba dirang mo lekaleng la botlhokomedi jwa kotsi mme ba ne ba tlatsa foromo e e nang le dipotso tse 46 tse di sa tshwaraganang. Sediriswa se se fitlhetswe se na le dikgopolo di le thataro tse di farologaneng tseo di lekanyang botlhokomedi jwa kotsi. Ka go dirisa thanolo ya dintlha ya patlisiso le ya tlhomamiso, dikgopolo tse di ne tsa netefatswa fa di tlhomame ebile di akanyega mme gape di lekanya botlhokomedi jwa kotsi mo bankeng. Se se kaya gore babatlisisi ba kwa isagong ba ka dirisa sediriswa se go ka batlisisetsa kwa pele tlhotlheletso ya botlhokomedi jwa kotsi mo tiragatsong le dikatlego tsa setlamo. Sediriswa sa bobatlisisi se se netefaditsweng ebile se ikanyegile se kgontsha batsamaisi mo ditheong tsa matlole go ka lekanya ka tlhomamo dikgopolo tsa botlhokomedi jwa kotsi gore ba dire ditshwetso ka kitso malebana le botsamaisi jwa kotsi. Ka jalo dibanka di ka tokafatsa botlhokomedi jwa kotsi ka tlhaeletsano e e siameng, puso e e siameng, dithotloetso tsa badiri, bokgoni, go obamela melao, gammogo le tokafatso ya ditsamaiso tsa go fokotsa dikotsi.