Banking Risk Management: Assessment of Existing Company Practices

Abstract

Main problem is that banking is one of the most important sectors of the economy all over the world. Being high-tech, it is most susceptible to ongoing changes, both at the macro and micro levels. As practice shows, such changes are associated with the increasing internationalization of credit institutions and markets, improvement of banking legislation and modern computer technologies, increased competition, and the emergence of new banking products and services in financial markets. The relevance of the topic of the master's thesis is that in order to ensure the effective functioning of a commercial bank, it is necessary to form, use and integrate into the bank's management structure mechanisms for effective protection against the negative impact of uncertainties arising in the course of banking activities. Such a mechanism is banking risk management. Purpose of this article is to study the existing problems of the effectiveness of bank risk management and develop practical recommendations for its improvement. Methods: The methodological basis of the work is the general scientific methods of comparative-systemic, structural-level, dialectical, vertical and horizontal analysis, qualitative and quantitative approaches and analytical techniques. In substantiating the theoretical provisions of the conclusions and recommendations, economic, statistical and empirical methods of cognition were used. Results and their significance: The theoretical and practical significance of the study lies in the development of theoretical provisions of a comprehensive analysis of banking risk management, as well as in the possibility of using the developed conclusions and recommendations in the practical activities of commercial banks. The analysis of the state and assessment of the effectiveness of risk management of commercial banks was carried out, the analysis of the features of the mechanism of functioning of risk management was carried out.