Analysis of financial risk management in a commercial bank

The functioning of commercial banks in a dynamic market environment is associated with risks that can lead to significant losses and, as a result, to bankruptcy. In the conditions of objective existence of risk and the financial losses associated with it, there is a need for a certain mechanism that allows the best possible way to take into account the risk when making and implementing management decisions. Such a mechanism is the management of risk as a set of methods, techniques and activities that allow predicting the occurrence of risk events and taking measures to exclude or reduce the negative consequences of the occurrence of such events. It is financial risks that the activities of commercial banks are subject to. Thus, financial risk management is a necessary part of the successful operation and development of any commercial bank. Such factors as poor asset quality, lack of timely identification of problem loans, weak control and generally ineffective risk management system are the main causes of bank failures...