| _version_ | 1866901409690025984 |
|---|---|
| author | Tuychiyeva Madina Gafarovna |
| author_facet | Tuychiyeva Madina Gafarovna |
| contents | <p><em><span lang="EN-US">This paper examines the impact of Environmental, Social, and Governance (ESG) factors on the risk management systems of commercial banks. As financial institutions increasingly face climate-related, social, and ethical challenges, integrating ESG principles into traditional risk frameworks has become a strategic necessity rather than a reputational choice. The study synthesizes theoretical, regulatory, and empirical evidence from Central Asia and Eastern Europe between 2018 and 2024 to explore how ESG considerations influence credit, operational, market, and reputational risk. The findings indicate that banks with well-established ESG governance structures demonstrate stronger financial resilience, lower non-performing loan ratios, and higher capital adequacy levels. Furthermore, governance quality emerges as the key driver linking ESG implementation to effective risk control. Despite growing progress, banks in developing economies still face challenges in data standardization, capacity building, and regulatory harmonization. Overall, the paper concludes that ESG integration enhances long-term stability, transparency, and stakeholder trust, positioning banks for sustainable growth in an evolving financial landscape.</span></em></p> |
| format | Recurso digital |
| id | zenodo_https___doi_org_10_5281_zenodo_17797664 |
| institution | Zenodo |
| language | |
| publishDate | 2025 |
| publisher | Zenodo |
| record_format | zenodo |
| spellingShingle | THE IMPACT OF ESG FACTORS ON A BANK'S RISK MANAGEMENT SYSTEM Tuychiyeva Madina Gafarovna <p><em><span lang="EN-US">This paper examines the impact of Environmental, Social, and Governance (ESG) factors on the risk management systems of commercial banks. As financial institutions increasingly face climate-related, social, and ethical challenges, integrating ESG principles into traditional risk frameworks has become a strategic necessity rather than a reputational choice. The study synthesizes theoretical, regulatory, and empirical evidence from Central Asia and Eastern Europe between 2018 and 2024 to explore how ESG considerations influence credit, operational, market, and reputational risk. The findings indicate that banks with well-established ESG governance structures demonstrate stronger financial resilience, lower non-performing loan ratios, and higher capital adequacy levels. Furthermore, governance quality emerges as the key driver linking ESG implementation to effective risk control. Despite growing progress, banks in developing economies still face challenges in data standardization, capacity building, and regulatory harmonization. Overall, the paper concludes that ESG integration enhances long-term stability, transparency, and stakeholder trust, positioning banks for sustainable growth in an evolving financial landscape.</span></em></p> |
| title | THE IMPACT OF ESG FACTORS ON A BANK'S RISK MANAGEMENT SYSTEM |
| url | https://doi.org/10.5281/zenodo.17797664 |