DIGITALIZATION OF RISK-ORIENTED MANAGEMENT OF FINANCIAL AND ECONOMIC SECURITY OF THE BANK

Abstract

The scientific results of the study are to determine the current trends of digitalization of risk-oriented management of banking activities to justify the directions of increasing the level of financial and economic security of Ukrainian banks in the context of the Russian-Ukrainian war and considering the needs of economic recovery. The expediency of using indicators of financial stability, which are published by the National Bank of Ukraine under martial law, has been proven, namely: the capital of the first level to the assets weighted by risk; the ratio of the capital of the first level to assets; non-performing loans excluding provisions for capital; non-performing loans to aggregate gross loans; rate of return on assets; net open position in foreign currency to capital. It is determined that modern banks introduce innovative digital solutions aimed at risk-oriented management of financial and economic security in a continuous real-time mode. Some procedures are performed automatically, and it is possible to use artificial intelligence programs, but these innovations must be managed carefully because we are talking about the financial security of millions of bank customers and the financial and economic security of banks, as well as the financial stability of the banking system of Ukraine. It has been substantiated that prospects for further research should be developed in the areas of economic recovery in Ukraine, by strengthening the banking system and developing digitalization of risk-based management of financial and economic security of banks using best practices and international experience. For a more objective assessment of the level of financial and economic security of Ukrainian banks, it is advisable to apply economic standards, regarding banking risks, indicators of financial stability, and the financial stress index, which together reflect the bank’s propensity for force majeure in the financial system, the ability to resist and adapt to adverse changes, and various economic challenges.