Increasing financial literacy of the population as an element of the product policy and risk management policy of a commercial bank

Авторами представляется принципиально новый подход к процессу повышения финансовой грамотности россиян - как к элементу продуктовой политики и политики управления рисками коммерческого банка. Сделан вывод о том, что финансовая неграмотность клиента не выгодна банкам, а повышение финансовой грамотности населения имеет исключительно положительные преимущества для всех участников финансового рынка. The authors present a fundamentally new approach to the process of increasing the financial literacy of Russians - as an element of the product policy and risk management policy of a commercial bank. It is concluded that the financial illiteracy of the client is not beneficial to banks, and the increase in the financial literacy of the population has extremely positive benefits for all participants in the financial market.

River science and flood risk management policy in England

We review the role of science in shaping river flood risk management policy in England, highlighting the relatively recent influence of fluvial geomorphology, river ecology, climate change and ecosystem services in evidence-based decision-making. These disciplines, together with an historical perspective, catchment-scale delivery, integrated land and water management planning, and adaptive management are crucial in managing future flood risk. A central tenet of previous land drainage policy was a professional (and public) mindset about flood ‘prevention’ solutions for river flooding. As a direct consequence, more than 8,500 km of rivers were ‘improved’ by mechanical dredging during the 1930s to 1980s; habitats were destroyed, but flooding continued. A more enlightened, long-term approach has since evolved in response to environmental imperatives and lessons learnt from several major floods during the last two ‘flood-rich’ decades. River science, local knowledge and land management incentives allow more natural processes to be restored in river catchments. The natural capital and ecosystem service benefits of river systems are now better understood and quantified, whereas the importance of sediment transport is fully recognised, with sources and sinks treated more holistically than in the past. Evaluating the outcomes of innovative runoff and river management techniques from both physical and socioeconomic perspectives will determine the success of a catchment-based approach. We highlight some of the uncertainties, nuances and assumptions associated with recent initiatives such as Natural Flood Management, Citizen Science and Flood Action Groups. Further integration between policy, strategic planning and local delivery is needed to anticipate and respond to climate and catchment land use changes. River science will play a crucial part in identifying the most effective way of improving flood management and in a way that helps to deliver the recovery of nature. It will inform adaptive management to cope with climate change.

ECONOMIC RISKS OF THE ENTERPRISE: POST-COVID TRANSFORMATION

Background.Development of the economy in the context of globalization, on the one hand, promotes new opportunities for the production of new goods and services, and on the other hand, increases existing threats and causes new ones, so it has a negative impact on economic security. Most threats to the economic security of an enterprise cannot be pre­dicted, and unpredictedthreatsare risks. The current situation requires companies to im­prove and optimize continuouslythe process of risk management and policy making. The aim of the paper is justification of the need for risk management policy as acomponent of the economic security of an enterprise. Materials and methods. Current regulations of Ukraine, publications of domestic and foreign scientists on the research topic, statistical materials and Internet sourcesare the information base of the research. Methods of generalization, analysis and synthesis, comparison, scientific abstraction and systematization were used to achieve the main aim of the paper. Results. The COVID-19 pandemichas had impact on the enterprisesactivities. The risk structure can be determined bysuchareas asstaff, processes,profit, profitability and partnerships.Risk management allows the company to ensure necessary development, increase competitiveness and economic security. An important component of the deve-lopment of risk management in the enterprise is the development of appropriate policies that allow to form an adequate understanding of the processes of each participant in the system, ensure strict compliance with established rules and compliance with mandatory procedures in risk management.At present, risk management is becoming a way to survive in a difficult economic situation, which will allow the company to ensure necessary deve­lopment, increase competitiveness and economic security. An important component ofrisk managementdevelopment of the enterprise ismaking of appropriate policies that allow to form an adequate understanding of the processes of each participant in the system, ensure strict compliance with established rules and compliance with compulsory procedures in risk management. Conclusion. Risk management process should become an integral part of corporate culturefor any company. Developed and implemented risk management policy should ensure full responsibility of its employees for understanding, assessing, established risk appe­tite and applying appropriate methods to reduce negative impact of risks on current and future business activities and economic security of the enterprise. Or any company, the risk management process should become an integral part of corporate culture, and the developed and implemented risk management policy should ensure full responsibility of all its employees for understanding, assessing, established risk appetite and applying appropriate methods to reduce the negative impact of risks on cur­rent and future business activities and economic security of the enterprise. Keywords: risk, uncertainty, enterprise, entrepreneurial risk, risk management, economic security, risk management policy.

Credit Risk Management Practices in Dashen Bank of Mettu Branch in Ethiopia

Credit Risk management becomes major discussion issues in the financial institutions because of uncertainty related to borrower’s business. The aim of this study is to assess credit risk management tools and technique that are being used in the bank and to what extent the current performance of the bank is supported by proper credit risk management policy, procedure and strategy. The study design is descriptive. The research applies for both qualitative and quantitative research method and both primary data (questionnaire) and secondary data were collected to meet the objective of the study. 15 out of 20 total population Purposive samples were involved at Branch office using census sampling method who works on credit to get reliable and valid information about the study subject. The data was analyzed using qualitative and descriptive statistics technique and frequency table. From the findings the study concludes that the bank has well organized credit policy that counter to credit risk they are exposed to and it also conclude that the bank has good credit granting practice and uses suitable credit risk assessment tools and techniques including loan follow-up, risk identification, measuring, evaluating, monitoring and controlling mechanism. However, the study also concluded that the bank has pitfalls such as absence of training for customers which results to loan diversion, absence of credit risk model that predict the risk level of the business and the priority sectors of the bank in terms of credit facility are highly exposed to credit risk which directly contribute to the increment of NPL. Thus, it is recommended that Dashen Bank S.C should develop independent risk management policy and procedure from credit policy and procedure to overcome those problems and to take measure on the spot.

Effectiveness of Risk Management in NG-CDF Construction Projects in Nairobi County

Globally, performance of a construction project is primarily judged by cost, time, and quality. Performance of any project is measured by the extent of meeting the standards laid down at the start of the project. Risk management has been conceptualized as having a great bearing on the outcome of projects. The purpose of this study was to investigate risk management in relation to performance of National Government Constituency Development Funded construction projects in Nairobi County. The objectives of the study included; to assessing the influence of resource risk management, to investigate the role of risk management procedures, to analyze the influence of risk management policies and finally to develop a framework for enhancing proper risk management in the CDF projects in Kenya. A survey research design was used. The study employed a probabilistic sampling technique of simple random sampling in data collection. The study found a positive correlation between NG-CDF construction projects performance and all its explanatory variables investigated in the study. The study established that Construction risk management is extremely critical for every company. Not knowing where there might be risks on a project leave companies vulnerable and ill-prepared. CDF risk management committee should therefore develop a risk management policy that is consistent with the risk management strategy and Explain the purpose, role and benefits of embedding risk management policy and procedures into firms’ policies and procedures.