Risk management and internal control systems in the financial sector of the Norwegian economy : a case study of DnB NOR ASA

Abstract

Businesses today are faced with greater challenges and complications than ever before, as economical, technological and legal interdependence become more common and pronounced. Due to these developments, risks may go unidentified too long and early warning indicators ignored. It is therefore assumed that every business organization has put in place risk management and internal control systems in order for the organization to continue running. In light of this, this research is undertaken to find out more about the risk management and internal control systems in the financial sector of the Norwegian economy.

The objectives of this thesis are to find out the risks that threaten the operations of DnB NOR ASA, the impact of these risks on the financial performance of DnB NOR ASA, the risk management and internal control systems put in place by DnB NOR ASA and how these control systems have impacted on the performance of DnB NOR ASA.

My thesis is a study of a concrete problem that every organization is exposed to. The investigation is made through the combination of theory and empirical work. Primary and secondary data has been gathered though qualitative and quantitative approaches. Questionnaire was used to collect primary information from key informants in DnB NOR ASA in the financial sector of Norway.

At the end of this study, significant findings in the company revealed that risk management and internal control systems exist in the company and that these control systems are very important, effective and therefore provide adequate checks and balances in DnB NOR ASA. The study also reveled that due to the strong risk management, internal control systems and credit strategies put in place by DnB NOR ASA, the company performed fairly well despite the down turn on the economy, such that the bank experienced less negative effect both on performance and profitability.