Formation of the risk management system of the bank in the conditions of the martial state economy: conceptual provisions

Abstract

In the article, the main theoretical aspects of the formation of the risk management system of a banking institution in the conditions of the martial law economy are examined. The purpose of the article is to form the conceptual basis for improving the risk management system in the conditions of the martial law and post-war reconstruction. The “banking risk” concept is specified, under which it is proposed to consider the situation caused by the uncertainty of the information used by the bank in the process of management and decision-making and is characterised by the dependence between the decision result and the probability of its occurrence. The composition of the risk management system needs to be clarified, taking account the aspects of the long-term development in the conditions of uncertainty and adaptability of the risk management system to the changes in the external and internal environment, which is a response to the requirements of the wartime economy. The introduction of the internal audit-controlling of the banking risks is proposed, the principles and stages of its implementation are developed.