An analysis of financial risk management at Woori Bank

Abstract

An affiliate of the Woori Financial Group, Woori Bank is a well-known bank with its main office in Seoul, South Korea. Being established in 1899, it was the first bank in South Korea to make web browsers other than Internet Explorer available for online banking. The bank now conducts business in Bangladesh under the name "Woori Bank Bangladesh." I had the chance to spend three months as an intern fully integrating into the culture and working environment of Woori Bank. The main objective of this research is to conduct a thorough examination of Woori Bank Bangladesh's financial risk management situation. Identifying, evaluating, monitoring, and reducing financial risks are all covered in the examination of financial risk management at Woori Bank. The goal of the study is to determine how well Woori Bank's risk management strategy works and how well it can maintain financial stability. Background information and the significance of financial risk management in the banking industry are emphasized in the introduction of the paper. It gives a summary of the objective of the research, which is to thoroughly analyze Woori Bank's risk management practices. The Woori Bank is described in broad terms, along with its background, profile, and the significance of financial risk management to the company. Following that, the risk identification, assessment, monitoring, and mitigation measures used by Woori Bank are examined. Woori Bank Bangladesh has beneficial trends based on an analysis of profitability, pointing in an advantageous direction. It is important to keep in mind that the bank's financial situation is inconsistent, with variations seen in profitability as well as liquidity and financial leverage. In 2020 and 2021, the COVID-19 pandemic may have contributed to this imbalance, but there were also similar variations before the world catastrophe. The analysis of financial measures and the CAMELS rating indicates that Woori Bank Bangladesh is in a respectable financial situation. However, there is still a lot of space for development. Rate-sensitive resources have a maximum maturity of 10 years, whereas rate-sensitive liabilities have a maximum maturity of 5 years, which is a contrast that should be taken seriously. In addition, the bank's reliance on short-term liabilities over short-term assets suggests a stronger need for 6 | P a g e refinancing. A gap ratio that is closer to zero would be preferable because it shows that assets and liabilities are more evenly distributed. The analysis of Woori Bank's financial risk management procedures looks at the beneficial effects of risk identification, the success of risk evaluation, the endurance of risk monitoring, and the acceptability of risk mitigation strategies. Recommendations to enhance the risk management framework for banks are based on the evaluation. The report concludes by summarizing the analysis' main conclusions and repeating the significance of effective financial risk management procedures in ensuring Woori Bank's stability and sustainability. Analysis of financial risk management at Woori Bank provides insight into the bank's strategy for managing financial risks and advances knowledge of industry best practices. It acts as a starting point for more investigation and the development of strategies for risk management at Woori Bank and other financial institutions. While the financial risks of Woori Bank Bangladesh are briefly examined in this report, more investigation is advised to get a completer and more accurate picture of the bank's situation. This type of in-depth study can produce invaluable knowledge and a more reliable result.