ABSTRACT

This study examines the role of the Board of Directors in bank risk management, with a focus on Ecobank Buea, Cameroon. Corporate governance, especially the function of the board, plays a critical role in ensuring effective risk management within financial institutions. The research explores how the board’s oversight, decision-making, and policy formulation contribute to managing financial, operational, and regulatory risks at Ecobank Buea. It also assesses the board’s influence on the bank’s risk culture, compliance, and overall performance.

A qualitative research approach was adopted, utilizing interviews with board members, senior management, and risk officers at Ecobank Buea. In addition, a review of the bank’s annual reports, risk management frameworks, and governance policies provided further insights into the board’s involvement in risk oversight. Relevant literature on corporate governance and risk management in the banking sector was also reviewed to provide a comprehensive understanding of best practices and standards.

Findings reveal that the Board of Directors at Ecobank Buea plays a crucial role in shaping the bank’s risk management strategy. The board is actively involved in defining risk appetite, approving risk management policies, and overseeing compliance with regulatory frameworks. However, challenges such as limited risk-related expertise among some board members and evolving regulatory demands were identified as areas requiring improvement. The study also highlights the importance of continuous training for board members and greater collaboration between the board and the bank’s risk management team.

The research concludes that effective corporate governance, driven by the board, is essential for robust risk management in banks. Ecobank Buea can further enhance its risk management practices by fostering a stronger risk-aware culture, improving board training on risk matters, and ensuring more proactive involvement in risk oversight. These measures will support the bank’s long-term stability and compliance with regulatory standards.

Keywords: corporate governance, board of directors, risk management, Ecobank, Buea, financial risk, regulatory compliance, risk culture, banking sector, Cameroon.