Operational and Credit Risk Management in Iran's Banking Industry

This study investigates the management of operational and credit risk in Iran’s banking sector under sanctions. Its main objective is to present an analytical–descriptive framework that demonstrates how aligning international risk-management standards with domestic mechanisms can enhance banks’ resilience to sanction-induced pressures and bridge the gap between domestic and global literatures. The research adopts a mixed-methods approach, comprising a literature review and a qualitative–quantitative analysis of sources, complemented by semi-structured interviews with bank risk managers to understand execution processes, constraints on access to international payment channels, and the application of risk controls. The findings indicate that tightening foreign exchange and banking restrictions both elevates credit risk and increases operating and compliance costs; banks with strong risk governance, robust internal financing strategies, and effective cyber controls perform better than less capable peers. The conclusion argues that strengthening information technology infrastructure, data standardization, and the integration of risk-reporting systems across units can provide a basis for sanctions stress-testing, improve decision-making, and enhance the operational and credit resilience of banks in the face of sanction pressures.

کلیدواژه ها:

Operational risk management ، credit risk management ، Iran's Banking Industry ، bank risk governance ، international standards for risk management