RISK-MANAGEMENT CHALLENGES AND AUDIT SOLUTIONS IN THE BANKING SECTOR

Financial audit in the banking sector plays a vital role in ensuring financial integrity and in managing the risks encountered by financial institutions. Banks are exposed to a wide range of financial, regulatory, and operational risks, and financial audit supports the identification, assessment, and mitigation of such vulnerabilities. This article explores the main challenges affecting financial audit in the banking sector and proposes solutions aimed at improving audit practices in the context of increasingly complex risk structures and continuously evolving regulations. Financial audit within the banking industry represents a crucial instrument for guaranteeing the integrity of the financial system, preventing fraud, and strengthening public confidence. Considering the complex, volatile, and inherently risky nature of banking activities, financial audit requires sophisticated methodological approaches, strict standards, and advanced risk-analysis capabilities. This paper presents the conceptual and legislative framework applicable to financial audit in the banking sector, analyzes the major challenges generated by market evolution and digitalization, evaluates possible solutions for risk management, and includes a comparative case study based on the Romanian banking sector. The conclusions highlight the need for an integrated approach grounded in modern technologies, continuous professional development, and consolidated internal control environments.