THE NEED FOR CREATING AN EFFECTIVE RISK MANAGEMENT IN COMMERCIAL BANKS OF UKRAINE

This article is devoted to the peculiarities of risk management in commercial banks of Ukraine. The authors have examined current approaches to the definition of the concept of “risk management” and also have defined the approaches of the National Bank of Ukraine to its understanding. For the purpose of the organization and functioning of risk management systems in commercial banks and in order to ensure that the banks carry out their transactions within acceptable risk parameters and use a method which will protect the interests of depositors, creditors and owners of the banks, the National Bank of Ukraine has developed and approved “Methodical guidelines for the organization and operation of risk management systems in the banks of Ukraine”. The advantages of risk management in banks and its main task have been considered. The content of the principles underlying risk management in banks has been defined. Six stages of bank risks have been substantiated. The role of the organizational structure in the process of bank risk management has been defined. The necessity of developing a program of assessment and management of risks has been justified, which should include the possibility of preventing their occurrence and the introduction of the system of early response to risks.

This article contains an introduction, four chapters and conclusions. The introduction substantiates the necessity of bank risk management. The first chapter reveals the economic essence of the concept of “risk management” and its peculiarities in the banking sector. The second chapter identifies the principles of bank risk management. The third chapter is devoted to the characteristics of the stages of risk management process. The fourth chapter reveals the organizational and functional provision of risk management in banks. The conclusions contain the main findings of the research.

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