Controlling risk

Division of Risk Management shall identify, measure, evaluate risks, sets limits for customers, partners for products, services, provides operational management and control system analysis, selection and implementation of monitoring tools, develop risk management measures, etc. . Despite the prevalence of the theoretical and practical position, it can be accepted only in part. Complications of banking activities is expressed in several planes - it's operations with an extremely risky financial instruments, and a fairly extensive network of bank branches, which leads to an increase in its risk positions, and distribution trends shaping banking alliances (bank holding groups, financial corporations, etc. ..) The structure consists of the last few financial institutions are subjected to various kinds of risk management, which requires special attention. Under these conditions, the localization of all the work with the risks in the division of risk management is not consistent with the concept of integrated management. First risky component almost does not obey the general planning process of the bank, because they use different data bases. In addition, the rule is violated optimize the ratio profit / risk, and compliance with regulatory demands constant for a single information and methodological basis. Locally, these limits do not reflect the general market or customer bank's policy. Combining Functions portfolio risk management, monitoring them and providing information to support the whole process of risk management within the division of risk management creates conditions for the weak accountability of all risk situations, reducing the effectiveness of the management process in the bank. In order to solve this problem in banks is advisable to introduce the post of risk-controller, which will report to the banking service of controlling. This will ensure the integration of risk management with overall planning, analysis and control. Topic: Controlling Improvement | Tags: Controlling