ORGANIZATION OF THE MANAGEMENT SYSTEM OF BANK RISKS
Journal Title: Сталий розвиток економіки - Year 2018, Vol 40, Issue 3
Abstract
Purpose. The purpose of the work is to reveal the current practice in organizing the banking risk management system, to determine the current state of banking risks, and to find ways to improve this work on the basis of systematization of existing proposals on this issue. Methodology of research. The article was used general science methods and methods of economic research, in particular: scientific abstraction - to highlight the problem of increased riskiness in the implementation of their activities by banking institutions; statistical and economic - for analysis, comparison and visual representation of statistical data in order to study the status of functioning of domestic banks and indicators that characterize the degree of security and the possibility of emerging banking risks; methods of statistical analysis - to generalize the effects of certain structural components of banking activity on the degree of risk; abstract-logical - to formulate conclusions and suggestions. Findings. The necessity of managing the bank's risks, which grows with each passing year, is determined in connection with the complicated general economic situation of the country and the emergence of new trends in banking activities. The economic indicators that characterize the degree of riskiness in banks are determined. A number of methods have been proposed for reducing or avoiding banking risks, namely: the necessity of creating an integrated approach to stress testing has been substantiated, a rather new approach to regulating the actions of bank employees and for determining the strategic goals of the bank for minimizing risks has been formed; it was proposed to follow and gradually to introduce into the system new principles and provisions of Basel III. Originality. It is substantiated that, despite a number of existing methods and principles for managing bank risks, the management system requires more systematic and integrated approach. Therefore, a method was proposed - a balanced system of indicators, which would make adjustments to risk management at the level of the entire bank. Practical value. The results of the research can be used not only by banks, but also by any financial and credit institutions that are faced with the problem of risk management. The methods given in the article can identify problems and solve them in a complex way.
Authors and Affiliations
Olena Khristoforova, Liudmyla Kucheriavenko
Keywords
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