Ýêîíîìè÷åñêèå íàóêè/1. Áàíêè è áàíêîâñêàÿ ñèñòåìà
Master of 1 course
of the Institute of World Economy and Finance
Bokova Natalia
Volgograd State University, Russia
The essence of bank risk management
An important role in
the economic transformation assigned to banks that
adjusted cash flow of
the country, accumulating financial resources and redistribute them. At the
same time banks own levers of influence on financial, investment, production,
and other sectors of the economy, as well as on the development of economic and
social relations.
During his active
work, banks are faced with different kinds of risks. Poor risk management in
banking may lead to the bankruptcy of the institution and because of its
position in the economy, and to a number of bankruptcies, related companies,
banks and individuals.
Lending is the most
profitable and at the same time the most risky part of the banking operations.
Therefore, credit risk management is an essential part of the strategy and
tactics of survival and development of any bank. Lending has always been and
remains a priority of the economic function of banks.
Modern banking market
is inconceivable without risk. The risk is present
in any operation, but
it can be of different scales and different offset. It would be extremely naive
to look for options to carry out banking operations, which would completely
eliminate the risk and advance to guarantee a certain financial result.
Therefore, for the banking activities it is important not to prevent the risk
in general, and the foresight and reduced it to the minimum level. Under the
risk is taken to mean the probability, or rather the threat of the loss of the
bank of its resources, revenue, or product the additional costs resulting from
the implementation of certain financial transactions.
Risk-taking - the
basis of banking. Banks are successful when they are taking reasonable risk,
controlled and are within their financial capabilities and competence. Banks
tend to get the most profit. But this aspiration is limited to the possibility
of incurring losses. The risk of banking activities and means the probability
that the actual profit of the bank is less than the planned, anticipated. The
higher the expected return, the higher the risk. The relationship between the
yield of the bank's operations and its risk in a very simplified form can be
expressed as a straight relationship.
Bank risk - it's
situational characteristics of the bank's activities, showing the uncertainty
of its outcome, and which characterizes the probability of a negative deviation
from the expected reality.
Banking operations
are very diverse, each of them has its own characteristics, and hence the level
of risk or the likelihood of a fixed loss. All variety of banking operations is
complemented by a variety of customers and changing market conditions, which
greatly complicates the development of some of the criteria for risk
assessment.
At risk practically
all types of banking operations. Analyzing the risks of commercial banks of
Kazakhstan at the present stage, it is necessary to take into account the
absence or imperfection of some of the basic legislation, the discrepancy
between the legal framework and the actual situation, inflation and more.
The development of
risk strategy is a series of successive stages, among which are:
1. Identify factors
that increase and decrease the specific type of risk in the implementation of
certain banking operations.
2. Analysis of the
factors identified in terms of the magnitude of the effect on the risk.
3. Evaluation of the
specific type of risk.
4. The establishment
of the optimal level of risk.
5. Analysis of
individual transactions from the point of view of compliance with an acceptable
level of risk.
6. Development of
measures for risk reduction.
With regard to the
factors that affect the risk, they are generally considered by banks is not
fully taken into consideration and only a certain standard they set, which is
periodically reviewed. These factors do not carry any particular purpose
calculated and serve as a reference base for risk analysis, as well as
"animate" and detail the purely mathematical evaluation.
The effectiveness of
the risk management organization is largely dependent on the classification.
Under risk classification should be understood distribution of risk at specific
groups according to certain characteristics to achieve their goals.
The effectiveness of
the risk management organization is largely dependent on the classification.
Under risk classification should be understood distribution of risk at specific
groups according to certain characteristics to achieve their goals.
In accordance with
the recommendations of the Basel Committee are the following typical types of
risks: credit risk, market risk (interest rate risk, equity risk, currency risk),
liquidity risk, operational risk, country risk (including the risk of
untranslatable funds), legal risk, the risk of loss of business reputation and
strategic risk.
At the same time we
should not forget about the high degree of abstraction of any classification,
and, consequently, about the close interconnectedness of absolutely all types
of risk.
Banking operations
are very diverse, each of them has its own characteristics, and hence the level
of risk or the likelihood of a fixed loss. All variety of banking operations is
complemented by a variety of customers and changing market conditions, which
greatly complicates the development of some of the criteria for risk
assessment. These circumstances make substantial changes in the aggregate
arising from banking risks and methods of their study. However, this does not
exclude the presence of common problems of risks and trends in the dynamics of
their level.
Changes one type of
risk cause changes in almost all other
species. All this, of
course, complicates the choice of a particular level of risk analysis method
and a decision on its optimization is an in-depth analysis of a variety of
other risk factors. Therefore, the choice of a particular method of analysis of
their level, the selection of the optimal factors are very important.
The financial crisis
looks very urgent problem of efficient and professional banking risk
management, operational risk management. The problem of risk management in each
bank is one of the main places, as the wrong approach in this matter can not
simply lead to large losses, but also to the closing of the credit institution.
At present, many domestic banks carried out the allocation of specific
employees and departments, whose function is to organize a system of risk
management of the banking activity or risk management.
The main objective of
risk management is to maintain acceptable profitability ratios with indicators
of safety and liquidity in asset and liability management of the bank, that is,
to minimize the losses of the bank.
All this involves the
development of each bank's own risk management strategy, ie the basis for
decision-making policy so as to promptly and consistently use all the features
of the bank and at the same time to keep the risks to an acceptable and manageable
level.
The basis of the
banking risk management The following principles should:
- Forecasting of
possible sources of losses or situations that could cause damage to their
quantitative measurement;
- Financing risks,
economic incentives to reduce them;
- Responsibility and
duty managers and employees, clear risk management policies and mechanisms;
- Coordinated
monitoring of risks across all departments and services of the bank, monitor
the effectiveness of risk management procedures.
Such work can not be
sketchy and brings results when developed and implemented certain risk
strategy: identify factors that increase and decrease the risk of a particular
form of the implementation of certain banking operations; analysis of the
factors identified in terms of the magnitude of the effect on the risk;
assessment of a particular type of risk; establishing the optimal level of
risk; analysis of individual transactions from the point of view of compliance
with acceptable levels of risk; development of measures for risk reduction.
A comprehensive
approach to risk management allows for more efficient use of resources, to
allocate responsibility to improve performance. The Bank needs to select a
portfolio of their clients so as to have the most optimal balance between active
and passive operations, maintain its level of liquidity and profitability
necessary for the smooth operation of the level. For this purpose it is
necessary to carry out a regular analysis of the level of all types of risks,
determine their optimal value for each moment and to use the full set of
management methods.
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