MODERN APPROACHES TO IMPROVING RISK MANAGEMENT IN BANKING MANAGEMENT

Abstract

The purpose of the article is to substantiate the theoretical and practical approaches to improving risks in banking management. Research methodology. Achievements set in the article the goals are achieved through a systems approach that encompasses a set of risk management techniques, procedures and tools. Results. The formation of the risk management system is based on modern approaches to banking management based on the development of a conceptual scheme of risk management. It is emphasized that risk is uncertainty, ie the result of unexpected changes. That is why modern measures of the risk management system are represented by three lines of protection and provide for the use of effective models and tools for risk assessment and measurement. Banking risk management is the process by which a bank identifies (identifies) risks, assesses their magnitude, monitors and controls its risk positions, and takes into account the relationships between different risk categories. Such tasks should be solved by the banking system of Ukraine in the current conditions of the country's strategic orientation to join European structures. Control of the level of risk of the bank's operation - used to identify trends in undesirable developments in order to further neutralize the negative consequences that may lead to risk as a result of decisions already made or uncontrolled changes in the external environment of the bank. The specificity of banking risks is closely related to the nature of banking, which is mainly due to the functions of financial intermediation in the money market. Banking involves a significant level of social responsibility, as banks in the implementation of active operations mainly risk the money of customers. On the other hand, the transformation of cash parameters by banks in the process of their redistribution, determines the risky nature of most banking operations. Thus, banks must form a comprehensive risk management system that would ensure effective identification, assessment, regulation and monitoring of all types of banking risks. This system should take into account the mutual influence of different types of risks, as well as solve the problem of ensuring the optimal relationship between profitability and risk of individual banking operations and banking activities in general. Different types of risks are caused by different factors and affect the stability of the bank in different ways. Among the significant number of risks associated with banking activities, the financial risks of basic banking operations play an extremely important role. The practical significance of the research results. The strategy and tactics and tactics of risk management of a commercial bank should ensure the continuity of financial transactions in the course of various economic cycles. The main method of risk detection is a comprehensive analysis of banking operations, which is characterized by risk and analysis of external factors that affect their formation and change in risk. Within the framework of such analysis, they get an idea of the financial stability of the system's banks, the existing trends of its change, including the possible negative impact of the external environment.