{"id":14157,"date":"2020-09-20T10:00:10","date_gmt":"2020-09-20T07:00:10","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=14157"},"modified":"2020-09-20T13:03:01","modified_gmt":"2020-09-20T10:03:01","slug":"financial-risks-of-the-bank","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/financial-risks-of-the-bank\/","title":{"rendered":"Volkova N., Mukhina A. Financial Risks of the Bank: Assessment and Mechanism of Neutralization"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification<\/strong>: G21<\/em>
\n<\/span><\/td>\n		DOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V22(2020)-01<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]<\/p>\n

Volkova Nelia<\/strong>, PhD in Economics, Associate Professor of the Department of Finance and Banking, Vasyl\u2019 Stus Donetsk National University, Vinnytsia, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0003-3790-3636<\/a>
\ne-mail:<\/strong> n.volkova@donnu.edu.ua<\/a><\/p>\n

Mukhina Alina<\/strong>, Master of Department of Finance and Banking, Vasyl\u2019 Stus Donetsk National University, Vinnytsia, Ukraine<\/p>\n

e-mail:<\/strong> mukhina.al@donnu.edu.ua<\/a><\/p>\n

 <\/p>\n

Financial Risks of the Bank: Assessment and Mechanism of Neutralization<\/h2>\n

 <\/p>\n

Abstract. Introduction.<\/strong> 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\u2019s 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.<\/p>\n

Purpose<\/strong>. The purpose of the article is to develop conceptual provisions for assessment financial risks and justifying the need to neutralize them.<\/p>\n

Results.<\/strong> 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<\/p>\n

Conclusions.<\/strong> Use of a conceptual approach will allow an effective risk assessment and decision-making to avoid or accept risk.\u00a0 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.<\/p>\n

Keywords:<\/strong>\u00a0 financial risks; assessment of bank risks; methods of Assessment; neutralization of financial risk; methods of neutralization.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Prymostka, L. , Chub, P. M. & Karcheva, H. T. (2007). Upravlinnia bankivskymy ryzykamy: navch. posib<\/em>. Kyiv: KNEU [in Ukrainian].<\/li>\n
  2. Board of the National Bank of Ukraine (2004). Methodical instructions on inspection of banks \u00abRisk assessment system\u00bb (Decree No. 104, February 15) Retrieved from https:\/\/zakon.rada.gov.ua\/laws\/show\/v0104500-04 [in Ukrainian].<\/li>\n
  3. Vovk, V. Y. & Khmelenko, O. V. (2008). Kredytuvannia i kontrol<\/em>. Kyiv: Znannia [in Ukrainian].<\/li>\n
  4. Volkov, D. P. (2015). Analysis of banking risks: basic approaches to definition. Ekonomichni nauky: Oblik i finansy<\/em>, 10, 131-139 [in Ukrainian].<\/li>\n
  5. Pernarivsky, O. & Pernarivska, O. O. (2018). Methods of risk assessment in banking. Skhidna Yevropa: Ekonomika, biznes ta upravlinnia<\/em>, 6, 828-833 [in Ukrainian].<\/li>\n
  6. Panchenko, K. S. (2018) Assessment and management of market risk of a commercial bank. Investytsii: praktyka ta dosvid<\/em>, 5, 45-48 [in Ukrainian].<\/li>\n
  7. Makarenko, P. & Bobyl, V. V. (2014). Upravlinnia finansovymy ryzykamy bankiv<\/em>.<\/em> Dnipropetrovsk : Herda [in Ukrainian].<\/li>\n
  8. Melnyk, D. S. (2012). Methods for assessment financial risks used by foreign banks. Investytsii: praktyka ta dosvid, <\/em>13, 60-64 [in Ukrainian].<\/li>\n
  9. Yepifanov, O., Vasylieva, T. A. & Kozmenko, S. M. (2012). Upravlinnia ryzykamy bankiv<\/em>. Sumy : DVNZ \u00abUABS NBU\u00bb [in Ukrainian].<\/li>\n
  10. Kuzmak, O. M. (2016). Mechanism of neutralization bank risks. Naukovyi visnyk Uzhhorodskoho universytetu: Ekonomika<\/em>, 1, 374-377 [in Ukrainian].<\/li>\n
  11. Sadvakasova, A. B. (2010). Mechanism of neutralization bank risks. Mezhdunarodnui ekonomycheskyi forum<\/em>. Retrieved from http:\/\/be5.biz\/ekonomika1\/r2010\/00038.htm [in Ukrainian].<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 13 August 2020<\/p>\n

    \"volkova.pdf\"<\/div>
    volkova.pdf<\/div><\/div>
    <\/div>
    <\/div>
    Size: <\/span>0.47 Mb<\/span><\/div>
    Download Now!<\/a><\/span>902<\/span> Downloads<\/span><\/span><\/div><\/div>
    <\/div>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n\n
    \n

    How to quote this article?<\/p>\n<\/td>\n<\/tr>\n

    Volkova N., Mukhina A. (2020). Financial Risks of the Bank: Assessment and Mechanism of Neutralization. Modern Economics<\/em>, 22(2020), 6-12. DOI: https:\/\/doi.org\/10.31521\/modecon.V22(2020)-01.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<< Back to contents<\/a>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n

    <\/div>\n

    [\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"excerpt":{"rendered":"

    [vc_row][vc_column][vc_column_text] JEL Classification: G21 DOI: https:\/\/doi.org\/10.31521\/modecon.V22(2020)-01 [\/vc_column_text][vc_column_text] Volkova Nelia, PhD in Economics, Associate Professor of the Department of Finance and Banking, Vasyl\u2019 Stus Donetsk National University, Vinnytsia, Ukraine ORCID ID: 0000-0003-3790-3636 e-mail: n.volkova@donnu.edu.ua Mukhina Alina, Master of Department of Finance and Banking, Vasyl\u2019 Stus Donetsk National University, Vinnytsia, Ukraine e-mail: mukhina.al@donnu.edu.ua   Financial Risks of
    Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":13475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[136],"tags":[137],"_links":{"self":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/14157"}],"collection":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/comments?post=14157"}],"version-history":[{"count":0,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/14157\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media\/13475"}],"wp:attachment":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media?parent=14157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/categories?post=14157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/tags?post=14157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}