Does cultural economics affect country’s competitiveness?

Abstract

The global economic development is often realised at the expense of environmental degradation, due to human malpractices in agriculture, transportation, manufacturing, and energy production activities. Enterprise risk management (ERM) sustainably shapes the impact of green banking so that it reliably offers a strategic panacea which harmonizes economic growth with environmental sustainability. This study serves to assess the effectiveness of mainstreaming ERM in green banking governance basing on the insights from the banking industry in Zimbabwe. The study objectives were to understand the ERM standard operating procedures (SOPs) in green banking governance, assess the influence of ERM in the mitigation of ESG risks, determine and analyse the social and environmental sustainability of green bank investments. The qualitative study which was done under an descriptive research design used purposive sampling technique and a sample size of twelve (12) interviewees was determined using the rules of data saturation. The study results show that banks are using COSO 2017 ERM framework to give reliable SOPs in green banking governance, ERM is a cornerstone in green banking governance in mitigating ESG risks, there are international and national regulatory frameworks that adequately champion the integration of ERM into green banking operations. The study concludes that, the effective mainstreaming of ERM in green banking governance makes the banking industry in Zimbabwe effective and efficient in its financial and nonfinancial operations. The study recommends that; there should be proper ERM SOPs that are determined and established by each and every bank to suit its existing green banking operations.

Keyword : Banking Industry, Enterprise Risk Management (ERM), Green Banking.