Risk in Banking Any discussion of risk management in banking must start with the understanding that banks exist for the purpose of taking risk, and the objective of supervision is certainly not to eliminate, and perhaps not even to lower, risk-taking. Rather, the objective of supervision is to assist in the management of risk.
We cannot lose sight of the fact that banks' willingness and ability to take risk, in turn, has allowed them to contribute significantly to economic growth by funding households and businesses.