THE ROLE OF FINANCIAL ANALYSIS INDICATORS IN THE PROCESS OF RISK REDUCTION IN COMMERCIAL BANKS

2021 ◽  
Vol 2 (2) ◽  
pp. 73-77
Author(s):  
AL-SAADI MOHANAD RAHIM SALIM ◽  
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Financial Stability ◽  
Financial Risk ◽  
Financial Analysis ◽  
Bank Risk ◽  
Credit Institution ◽  
Russian Bank

The article is devoted to the use of financial analysis for the purposes of risk management of a commer-cial bank. The paper defines the bank risk, provides a classification of banking risks, and also uses the exam-ple of the largest Russian bank, Sberbank PJSC, to calculate the main indicators used in assessing the finan-cial risks of a credit institution. In particular, the dynamics of indicators of liquidity and financial stability, indi-cators of credit risk assessment, indicators of market risk assessment are analyzed. Based on the results of the calculations, the relevant conclusions were drawn and basic recommendations for the bank’s financial risk management were developed.

scholarly journals Simulation and risk management of financial activities in the digital economy era

2021 ◽  
Vol 34 (04) ◽  
pp. 1388-1395
Author(s):  
Mikhail Samuilovich Gasparian ◽  
Irina Anatolievna Kiseleva ◽  
Valery Aleksandrovich Titov ◽  
Leonid Anatolyevich Olenev
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Financial Risk ◽  
Economic Security ◽  
Digital Economy ◽  
Main Element ◽  
The Internet ◽  
Political Situation ◽  
Reduce Risk

The present article attempts to study the role of financial risk management in the digital economy era. The main purpose of the article is to identify the main patterns that determine the features of risk assessment in business as the main element contributing to the achievement of economic security of the organization, as well as to carry out a comparative analysis of risk assessment and risk management methods in the context of digitalization. The contemporary economic analysis employs various risk management methods. Digitalization also creates new risks, most of which are related to cybercrime and fraud on the Internet. The most effective ways to reduce risk in the context of instability of the economic and political situation in Russia are the scenarios method and the method of analyzing hierarchies, as well as diversification, i.e. the distribution of risks among several business participants. The article discusses various types of economic risks, risk analysis, and assessment methods, as well as risk neutralizing strategies.

Financial Risks of the Bank: Assessment and Mechanism of Neutralization

2020 ◽  
Vol 22 (1) ◽  
pp. 6-12
Author(s):  
Nelia Volkova ◽  
◽  
Alina Mukhina ◽  
Keyword(s):  
Risk Assessment ◽  
Financial Stability ◽  
Financial Risk ◽  
Stable Operation ◽  
Financial Risks ◽  
Negative Consequences ◽  
Conceptual Approach ◽  
Relevant Today ◽  
Banking Institution ◽  
The Impact

Abstract. Introduction. The issue of financial risk management of commercial banks is quite relevant today, because the activity of banks is the most risky of all. The presence of risks in banking can lead to unexpected losses, namely the loss of own resources. That’s why for the stable operation of the bank without loss the priority is to assess the financial risks, which is the basis for their further neutralization. Purpose. The purpose of the article is to develop conceptual provisions for assessment financial risks and justifying the need to neutralize them. Results. The article analyzes the impact of risks on the financial stability of a banking institution. The main methods of bank risk assessment are considered. All these include the statistical method, the analytical method, the expert method, the analogue method and the combined method. The necessity of neutralization of financial risks in order to avoid negative consequences is substantiated. Also the methods of bank risks neutralization are considered. It should be noted that these methods of neutralization can not only be used, but also supplement the list with new methods must be done, which in the future will protect the bank from the influence of undesirable factors. A conceptual approach to the assessment and neutralization of financial risks is proposed. This conceptual approach aims to ensure effective assessment of the level of risk with their subsequent neutralization Conclusions. Use of a conceptual approach will allow an effective risk assessment and decision-making to avoid or accept risk. Thanks to using this approach, the banking institution will be able to react swiftly to the presence of financial risks and to prevent the occurrence of negative consequences, which may lead to a violation of the financial stability of the bank.

Sustainable Development and Risk Management

2021 ◽  
Vol 18 (4) ◽  
pp. 16-27
Author(s):  
E. Yu. Pertseva ◽  
V. Yu. Skobarev ◽  
E. E. Telenkov
Keyword(s):  
Risk Management ◽  
Development Strategy ◽  
Management System ◽  
Financial Risk ◽  
Workplace Safety ◽  
Financial Risks ◽  
Performance Targets ◽  
Company Value ◽  
Risk Management System

In the context of the increasing role of non-financial factors of company value creation, many organizations, when developing a development strategy, go beyond exclusively financial and economic goals and include workplace safety, energy efficiency, customer satisfaction and other non-financial goals in their performance targets. Achieving such goals involves risks, but today there is no common understanding of the composition of the relevant risks, their sources (factors of occurrence), approaches to assessing these risks, as well as universal corporate tools for managing them. In this article, we offer our vision of the place of the so-called “non-financial risks” in the risk management system and show the possibilities of integrating non-financial risk management into the risk management system and the management model of the organization.

scholarly journals ЗАКОНИ Й ЗАКОНОМІРНОСТІ УПРАВЛІННЯ ФІНАНСОВИМИ РИЗИКАМИ ПРОМИСЛОВИХ ПІДПРИЄМСТВ

2020 ◽  
pp. 267-284
Author(s):  
Olena Shyshkina
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Financial Risk Management ◽  
Industrial Enterprises ◽  
Different Levels

The article explores the terminological apparatus of such categories as "law" and "regularity" and establishes links between them. It has been proved that it is impossible to disclose the content of the methodology of financial risk management of industrial enterprises without applying the laws of different levels of knowledge (universal, general, and partial). In this connection, it has been disclosed the substantive essence of universal, general, and partial laws, the laws that are descriptive and explanatory, the laws that are statistical and dynamic, the laws that are fundamental and applied, the laws that are phenomenological and essential, and the laws of systems formation, functioning and development. The role and place of management laws in the system of laws have been determined and the role of financial risk management laws has been formulated. The basic methods of the research of problems of financial risk management of industrial enterprises have been summarized and the content of the basic laws and regularities of financial risk management of industrial enterprises has been formulated.

The role of Financial Market Infrastructures in Financial Stability

2016 ◽  
pp. 20-40
Author(s):  
Serafin Martinez-Jaramillo ◽  
Jose Luis Molina-Borboa ◽  
Bernardo Bravo-Benitez
Keyword(s):  
Risk Assessment ◽  
Financial Market ◽  
Financial Stability ◽  
Financial System ◽  
General Overview ◽  
Proper Functioning ◽  
Financial Transactions ◽  
Adequate Supervision

Financial Market Infrastructures (FMIs) are essential for the well-functioning of the financial system, as they play a central role in facilitating clearance and settlement of financial transactions such as payments, securities, and derivatives contracts. Nowadays, it is widely acknowledged that the proper functioning of systemically important FMIs is also vital to maintain financial stability; their failure for solvency reasons or operational disruptions could almost certainly lead to systemic instability. As a consequence, the adequate supervision of FMIs is inherent to the function of preserving financial stability. The aim of this chapter is to provide a general overview of the different FMIs; discuss their role in financial stability and to give an overview of the efforts made by some financial authorities towards the supervision, risk assessment and reinforcement of FMIs.

THE METHODOLOGICAL VALUE OF THE CLASSIFICATION IN THE COMPANY FINANCIAL RISK MANAGEMENT SYSTEM

2020 ◽  
Author(s):  
A.A. Fathulin ◽  
N. A. Fathulina ◽  
S. N. Basova
Keyword(s):  
Risk Management ◽  
Management System ◽  
Financial Risk ◽  
Methodological Approach ◽  
Financial Risks ◽  
Risk And Uncertainty ◽  
Financial Risk Management ◽  
Risk Management System

The complexity of understanding the nature of risks, as well as the diversity of their types and manifestations, including financial risks, requires the use of a methodological approach to their classification. Classification of financial risks is of particular importance in the company's activities in order to effectively manage them. The article analyzes the concepts of "risk" and "uncertainty", and provides risk classifications for various reasons. It is concluded that it is possible to control and manage risks through comprehensive accounting and, accordingly, prevention of various types of threats and uncertainties in the company's activities.

scholarly journals Knowledge is power – conceptualizing collaborative financial risk assessment

2019 ◽  
Vol 20 (3) ◽  
pp. 226-248 ◽  
Author(s):  
Thomas Michael Brunner-Kirchmair ◽  
Melanie Wiener
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Financial Risk ◽  
Risk Identification ◽  
Modern World ◽  
Risk Governance ◽  
Financial Risks ◽  
Financial Risk Management ◽  
Content Type ◽  
New Findings

Purpose Inspired by new findings on and perceptions of risk governance, such as the necessity of taking a broader perspective in coping with risks in companies and working together in interactive groups with various stakeholders to deal with complex risks in the modern world, the purpose of this paper is looking for new ways to deal with financial risks. Current methods dealing with those risks are confronted with the problems of being primarily based on past data and experience, neglecting the need for objectivity, focusing on the short-term future and disregarding the interconnectedness of different financial risk categories. Design/methodology/approach A literature review of risk governance, financial risk management and open foresight was executed to conceptualize solutions to the mentioned-above problems. Findings Collaborative financial risk assessment (CFRA) is a promising approach in financial risk governance with respect to overcoming said problems. It is a method of risk identification and assessment, which combines aspects of “open foresight” and the financial risk management and governance literature. CFRA is characterized as bringing together members of different companies in trying to detect weak signals and trends to gain knowledge about the future, which helps companies to reduce financial risks and increase the chance of gaining economic value. By overcoming organizational boundaries, individual companies may gain the knowledge they would probably not have without CFRA and achieve a competitive advantage. Research limitations/implications A conceptual paper like the one at hand wants empirical proof. Therefore, the authors developed a research agenda in the form of five propositions for further research. Originality/value This paper discusses the existing problems of financial risk identification and assessment methods. It contributes to the existing literature by proposing CFRA as a solution to those problems and adding a new perspective to financial risk governance.

scholarly journals Quantile contours and allometric modelling for risk classification of abnormal ratios with an application to asymmetric growth-restriction in preterm infants

2019 ◽  
Vol 29 (7) ◽  
pp. 1769-1786
Author(s):  
Marco Geraci ◽  
Nansi S Boghossian ◽  
Alessio Farcomeni ◽  
Jeffrey D Horbar
Keyword(s):  
Risk Assessment ◽  
Preterm Infants ◽  
Operational Definition ◽  
Risk Classification ◽  
Large Dataset ◽  
Maternal Hypertension ◽  
Asymmetric Growth ◽  
Definition Of

We develop an approach to risk classification based on quantile contours and allometric modelling of multivariate anthropometric measurements. We propose the definition of allometric direction tangent to the directional quantile envelope, which divides ratios of measurements into half-spaces. This in turn provides an operational definition of directional quantile that can be used as cutoff for risk assessment. We show the application of the proposed approach using a large dataset from the Vermont Oxford Network containing observations of birthweight (BW) and head circumference (HC) for more than 150,000 preterm infants. Our analysis suggests that disproportionately growth-restricted infants with a larger HC-to-BW ratio are at increased mortality risk as compared to proportionately growth-restricted infants. The role of maternal hypertension is also investigated.

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