Evaluation and regulation of the bank's risk appetite

Vasilyev Igor

The income of commercial banks and their level of economic security are a manifestation of the risk to which they will agree and take into account in the course of their activities. Today, every credit institution operates in conditions of instability and uncertainty of the external environment and, accordingly, in a risk environment. In the process of achieving their goals, commercial banks face risk every day. All the income can earn is a manifestation of the risk to which they will agree and take into account in the course of their activities. Thus, each commercial bank determines the result that it hopes to get. This result is the starting point for the formation of a portfolio of strategic directions for its development. In this context, it is important to determine how much risk is acceptable to achieve these goals. This uses the concept of risk appetite, which allows establishing a balance between the desired result and the possible danger in the process of achieving goals.

Keywords:risk-appetite, risk neutralization, banking risks, risk-management, banking services.