Enduring vulnerabilities in financial crises: a qualitative analysis of risk management failures and regulatory safeguards

Purpose The purpose of this study is to examine major financial crises to identify enduring vulnerabilities and propose practical solutions. Design/methodology/approach Expert interviews and historical context inform the analysis of the causes and consequences of significant financial crises, including the Great Depression, 2008 Global Financial Crisis and Silicon Valley Bank’s 2023 failure. Findings This study reveals internal risk management failures, lack of “what if” dynamics and insufficient regulatory safeguards as persistent vulnerabilities. Expert recommendations include enhanced regulatory frameworks, more effective oversight and stronger accountability mechanisms. Research limitations/implications This study has some shortcomings that suggest areas for future research. Notably, the limited sample size of only two industry experts limits the findings’ generalizability, and future studies could benefit from a larger and more varied group of participants. Individual biases may also influence the experts’ experiences and opinions, emphasizing the significance of considering diverse perspectives. This study’s depth of exploration was likewise restricted, with certain themes and recommendations requiring additional investigation. Furthermore, the regional concentration on the US banking industry may not be reflective of other regions or countries. Practical implications This qualitative study provides important insights into strengthening the banking industry by identifying important flaws and offering expert recommendations for fixes. Regulators, legislators and industry stakeholders can use these findings to enhance consumer protection, regulation and risk management, thereby preventing future crises. This study’s key implications include: implementing proactive risk management and fortifying regulatory frameworks; prioritizing long-term stability over short-term gains; and promoting diversification and cultivating industry collaboration. Social implications This study’s findings underline the urgency of these implications by confirming previous research on risk management and the banking industry’s flaws. Fascinatingly, the results of this study align with Feng’s (2024) analysis of banking systemic risk. The findings also corroborate Wang and He’s (2023) assessment of the macroeconomic impacts of external financial disruptions and Metrick’s (2024) analysis of the Silicon Valley Bank failure. Furthermore, this study supports Ahmadirad’s (2024) emphasis on technology developments and venture capital as means of supporting global financial markets. These consistent results validate the expert-recommended solutions for enhancing financial stability and preventing future crises. Originality/value This research provides policymakers, regulators and industry stakeholders with insights to enhance risk management, regulation and customer protection, promoting financial sector resilience and stability.