Theoretical and practical aspects of managing the financial and economic security of banks

Abstract

Introduction. Existing economic and managing ways to ensure the financial and economic security of banks in Ukraine are not always reliable tools, because its mostly relate to certain aspects of the bank's activities, rather than the bank as a whole open dynamic dynamic system. According to the system approach, the basis of security of such systems is the bank's compliance with stability and dynamic balance. In this case, the stability should be considered in three aspects – the stability of the trajectory of development, the stability of the attractor and structural stability.

The purpose of the study is the theoretical justification and development of practical recommendations for the building an effective system of financial and economic security management of banks considering the risks in its activities.

Method (methodology). The methodological basis of the study is a systematic approach, methods of analysis and synthesis, theoretical and logical generalisations and hypotheses, economic and mathematical methods.

Results. It was justified the expediency of using an integrated model of financial and economic security management of banks, which is based on an effective risk management system and provides a systematic process of risk identification, measurement, monitoring, control, reporting and appropriate regulation at all organizational levels. The proposed integrated model should include such basic components as: assessment of the existing security potential of the bank; adaptive (stabilizing) mechanism; obtaining a synergistic effect. The building of an effective system for managing the financial and economic security of banks is impossible without high-quality diagnostics and constant monitoring of the security potential of banks. A summary indicator has been developed to assess the potential of financial security of banks assessment, which is calculated on the basis of risk and the available potential of the bank's strength. It is proposed to use early warning signals that consider the dynamics and variability of liquidity and performance of banks. Experimental testing of the proposed instruments was carried out according to the financial statements of banks. The article reveals the essence of financial and economic security of banks and identifies components of the mechanism of bank security management. Developed conceptual approaches involve the use of preventive methods to prevent threats to the security of banks.