BANK RISKS, THEIR CLASSIFICATION AND RISK-MANAGEMENT

Abstract

Purpose - to justification theoretical, methodological guidelines and practical recommendations on the nature of banking risks, their classification and risk management. Methodology of research. In basis of researches are fixed both scientific (analysis, supervision) and special methods of cognition. The methods of analysis and supervision are used for research of bank risks and their classification. The methods used to study the knowledge of the specific risk management and clarify the main objectives of banking risk management, which should be to minimize, avoid, mitigate risks, their insurance, establishing limits their size. Findings. It was determined that risks are the inalienable constituent of all operations which are executed a bank in the conditions of market economy at presence of competition and due to the specific of bank activity. It is well-proven that as well as in other types of business, in bank activity, a risk contacts above all things with financial losses which arise up in the case of realization of certain risks. It was established that a risk is expressed possibility of receipt of such undesirable results, as a loss of income or origin of losses. Grounded point of view in relation to that as fully avoiding risks is impossible, it is needed by them and possible to lead. It should be remembered that all risks are interrelated, and their level is constantly changing. Therefore, in the process of bank activity it is needed not to avoid a risk in general, but provide for and diminish him to the minimum level. Exactly herein a management consists a risk. It was determined that a risk-management in bank practice is examined as a key trend of management bank activity. In this process considerable attention is spared research of risk spheres and basic types of risks, search of effective methods of control, evaluation and monitoring of risks, and also creation of proper control system. Originality. It was clarified the main objectives of banking risk management, which should be to minimize, avoid, mitigate risks, their insurance, establishing limits their size. Practical value. The obtained results of research can be proposed for implementation in a bank sector which will promote him to effective development.