Comprehensive assessment of risk-factor in the modern conditions of banking business development

Abstract

The article proposes a theoretical and methodological approach to the estimation of the risk factor integral indicator in the banks activity. It is determined that the modern banking business development is associated with a considerable number of risks, which given the globalization processes, political, economic problems in Ukraine and world, technological and information systems development, which tend to transformation. It is established that the successful of bank activity depends largely on the chosen concept of risk management. It is proved that the risk management system should be based on scientifically grounded, substantially adapted to the realities of banking activity methodology, advanced technologies and world experience of risk management. The need an integrated risk indicator developing in banks is associated with the adoption by the Basel Committee on Banking Supervision of a global reform of the world banking system, which based on new standards of requirements for the structure of banks’ assets and capital. The methodology for calculating the integral risk indicator of banks’ functioning includes the following stages: diagnostics and monitoring of banks’ financial stability indicators; beta coefficient calculation; the banks’ financial stability assessment taking into account the risk factor; making risk management decisions. It is proposed to evaluate the obtained results as well as the selection of optimal management decisions with using a matrix of risk management strategies. It is substantiated that in the system of risk assessment and management of banking activity it is advisable to pay attention of an effective internal control system organization. The main goals and directions of internal control organization in banks are determined. The risk management system is an integral part of internal control. It is proved that the definition of main risks associated with the banks activity, as well as the methods for managing them, should be made on the basis of the Banking Risk Management Concept, which is based on the recommendations of the Basel Committee on Banking Supervision and relevant legislation.