METHODOLOGY FOR ASSESSING THE MANAGEMENT OF STRATEGIC RISK OF THE BANK

Ірина Миколаївна Рабико

Abstract


The article proves the need to assess and monitor the strategic risk of the bank on an ongoing basis. The author's methodology for assessing the management of strategic risk of the bank, based on the international principles of the Basel Committee of Banking Supervision, international standards of financial reporting and current legislation of the Republic of Belarus, is presented. The methodology consists of several stages, including the collection of information for risk assessment, the distribution of information between criteria of assessment, the assignment of scores to each criteria on the basis of expert judgment and the scale of assessment, the summing of scores and the determination of the final score, and the determination of the degree of efficiency of the strategic risk management system of the bank. This assessment can be used by the bank in developing measures to improve the efficiency of strategic risk management of the bank. This methodology enables additional monitoring of the bank's strategic risk management system and measures aimed at its effective control by the bank's owners and top management. The methodology is approved and used in the banking system.


Keywords


bank; methodology; strategic risk of the bank; criteria of assessment’ scale of assessment

References


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References

Resolution of the Board of the National Bank of the Republic Belarus on October 29, 2012 № 550 Retrieved from http: //www.nbrb: by / Ledislation / documents / I_550pdf.

Rabyko, I. N. (2016). Efficiency of the risk management system and methodological approaches to its assessment. Bank Gazette, 635: 30-36.

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Collins J. M. & Ruefli T. W. (1992). Strategic Risk: an Ordinal Approach // Management Science, 12, 38: 1707 – 1731.

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Basel Committee on Banking Supervision. Basel III: A global regulatory framework for more resilient banks and banking sys-tems. December 2010 (rev June 2011). Bank for International Settlements. Retrieved from http://www.bis.org/publ/bcbs189.pdf.


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