EVALUATING RISK LEVELS IN THE BANKING SECTOR

Аннотация

This article examines the probability of risk occurrence within the banking sector and analyzes their potential impact on the financial performance and stability of banks. A comprehensive approach to risk assessment is proposed, including detailed mechanisms and tools for evaluating various types of risks—such as credit, market, operational, and liquidity risks. Particular attention is given to the development stages of a risk assessment matrix, which serves as a strategic instrument for identifying, categorizing, and prioritizing risks based on their likelihood and potential consequences. Moreover, the study addresses the essential aspects of continuous risk monitoring and control processes, emphasizing the importance of timely detection and effective management to mitigate adverse effects on banking operations. The findings are intended to enhance risk management practices and support the development of moreresilient and sustainable banking systems. Keywords:risks, risk matrix, risk appetite, risk level, risk probability, risk impact, risk monitoring, risk control.