International Journal of Nonlinear Analysis and Applications

Presenting a continuous risk monitoring model in the banking field based on structural equations

Articles in Press

Document Type : Research Paper

Authors

1 Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran

2 Department of Accounting, Masjed Soleyman Branch, Islamic Azad University, Masjed Soleyman, Iran

Abstract

The purpose of this research is to present a continuous risk monitoring model in the banking sector utilising structural equations. It is a type of behavioural research, specifically exploring the interplay between analytical data concerning banking risks and the behaviour patterns of internal auditors. Smart PLS software was used for analysis. Employees working in all banks and credit, and financial institutions of the private and public sectors have been considered as the statistical population research. A questionnaire, focusing on risk aspects in the banking industry, was developed in collaboration with ten experts. The most important assessment criterion used to evaluate the structural model is the coefficient of determination. which shows the amount of prediction of the model. A model is suitable when it predicts the indicators of latent endogenous variables. The general model includes both the measurement and structural model parts, and by confirming its fit, the fit check in a model is complete. The results of the research indicate that there is a positive and significant relationship between market risk and its components (stock risk, exchange rate risk, and securities risk). Similarly, there is a positive and significant relationship between credit risk and its components (centralised facility risk and facility applicant risk. While market and credit risks are well-recognised, operational risk is still unclear for managers. Unlike market and credit risks that exist in specific areas of business, operational risk is a part of all business processes. Additionally, there is a positive and significant relationship between the liquidity risk and its components (the risk of not performing the crisis test, non-commitment of liquidity coverage and other risks).

Keywords

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International Journal of Nonlinear Analysis and Applications

Articles in Press, Corrected Proof
Available Online from 15 October 2025
  • Receive Date: 01 May 2023
  • Accept Date: 07 June 2023