Around the world, banking statistics show that banks that have established a risk management system have survived, and those that are overbooked have been bankrupt or taken over by other financial institutions. Experts point out that most of the failures of financial institutions are starting with a failure to establish a risk management system. The fate of financial institutions depends on risk management. As a result of the financial crisis in 1997, many financial companies such as banks, armaments, mutual funds, and life insurance companies were merged or withdrawn, and poor credit cooperatives were either bankrupt or absorbed.
Although the necessity and importance of risk is increasing, credit cooperatives are at an early stage of risk management due to lack of awareness of risk management of employees and employees, lack of utilization of developed ALM system, and lack of expertise and education of risk managers. In general, commercial banks and the NACF provide comprehensive asset and liabihty management systems that can be used to monitor the maturity of assets and liabilities, to change the value of assets and liabilities due to large-scale withdrawals and changes in interest rates, to raise funding rates, And the difficulty of managing the risk. In the case of savings banks, risk monitoring is conducted through the Korea Deposit Insurance Corporation.
Therefore, credit cooperatives must first establish a risk management organization in order to strengthen risk management, and second, strengthen existing risk management system guidance. Third, we need expertise in risk management. Fourth, we need to upgrade our risk management system and accumulate databases. The last is strengthening the internal control system for human risk for accident prevention. Risk management should strive to ensure that critical and effective risk management is essential for sustainable growth.