METHODOLOGICAL FOUNDATIONS FOR THE DEVELOPMENT OF THE FINANCIAL STABILITY RISK MANAGEMENT SYSTEM IN THE INVESTMENT ACTIVITIES OF BANKS
The risk of loss of financial stability in the investment activities of banks is the probability of a negative impact of the negative financial result of the bank`s investment activities on the capital structure and bringing it to an imbalance of funds. This type of risk is complex and includes several types of banking risks that have a direct impact on the financial stability of the bank. A system for managing such a risk implies a combination of three systems: the control system, the managed system and the result of the management. Each of the elements of the system is subject to the principles of managing the risk of loss of financial stability and thus contributes to achieving the result - minimizing the studied risk. Effective risk management is a crucial task of the bank to ensure profitability, as well as to maximize the value of shareholders. The business environment and the development of technologies had a significant impact on changes in risk management practices. The management of the considered risk is an iterative process. All links are constantly changing, and each change affects the other links. Managing this risk is a part of the bank`s portfolio management process. For each bank, the management system is built based on the needs and specifics. Control elements can manifest themselves in a large number, so they need to be evaluated, grouped and determine the degree of influence on the financial stability of the bank`s investment activities.
Keywords: risk management, financial stability, investment activity of the bank, risk of loss of financial stability, credit organizations, banks, complex risk, risks analysis.
Highlights:
♦ studying risk as a complex indicator;
♦ implementation of a vertical risk management system to obtain a comparable assessment for all types of risk;
♦ Introduction of an additional block: "Forecast values analytics system and modernization of management methods and tools".
Tatyana S. Fedorenko, Post-graduate student of the Plekhanov Russian University of Economics, Moscow.