DOI: https://doi.org/10.36719/2706-6185/47/97-100
Valeh Abdullazadeh
Azerbaijan Tourism and Management University
https://orcid.org/0009-0007-3225-205X
abdullazade.valeh.013@gmail.com
Theoretical Approaches to the Issues of Organizing
Risk Management in Banks
Abstract
Risk management in the banking sector has long been one of the core topics of interest in both academic and practical domains. Changes in the global financial system, economic uncertainties, market liberalization, technological innovations, and the increasing complexity of regulatory frameworks have necessitated the development of new approaches to organizing risk management in banks. Structurally, banking activities are exposed to various types of risks — credit risk, liquidity risk, interest rate risk, currency risk, operational risk, legal risk, and reputational risk. Each of these risks has a direct impact on the financial stability and operational efficiency of banks. It is essential to comprehensively identify, measure, evaluate, and manage these risks through well-developed theoretical approaches and their practical implementation. Traditional approaches in the field of risk management were primarily based on principles of minimizing, transferring, and distributing risks. However, in recent decades, modern theoretical frameworks have shifted towards not only reducing risks but also managing them proactively, emphasizing the creation of agile response and decision-making mechanisms against risks.
Keywords: risk management, banking sector, financial stability, credit risk, liquidity risk, operational risk