---
entity_slug: bank_risk_management
entity_type: Process
vsm_system: S3*
type_rationale: Bank Risk Management is fundamentally an ongoing activity of identifying,
  assessing, and controlling risks rather than a static entity that exists independently.
vsm_rationale: This process serves an audit function by inspecting and monitoring
  compliance with risk parameters to ensure the integrity and stability of banking
  operations.
classified_at: '2026-02-23T10:47:34.772474'
---

# Classification: Bank Risk Management

## Entity Type

Process

## VSM System

S3*

## Type Rationale

Bank Risk Management is fundamentally an ongoing activity of identifying, assessing, and controlling risks rather than a static entity that exists independently.

## VSM Rationale

This process serves an audit function by inspecting and monitoring compliance with risk parameters to ensure the integrity and stability of banking operations.