Improving economic security of the commercial banks based on internal control of the operational risk

Cover Page

Cite item

Full Text

Abstract

New regulation of the operational risks established by Bank of Russia Regulation No. 744-P dated December 7, 2020 “On the procedure for calculating the amount of operational risk (“Basel III”) creates new opportunities for the banking sector for capital optimization to cover this type of risk. However, in recent years, financial operating losses (the damage from crimes committed in the credit and financial sector in Russia in 2021 exceeded 386 million rubles) confirm the fact that the risk from the realization of risks is more significant. The reasons are wide variety of the operational risks, high dynamics in the detection of new types, as well as their more secretive nature in detection with other risks, which has a sharply negative impact on the security of the bank. Nevertheless, the optimization is impossible without countering threats to economic security. In our opinion, the set conditions are best met by a risk-based internal control system within a particular credit institution. The Basel Committee underpin the need for building an internal control system based on the recognition and assessment of the risks assumed by the bank, and their relationship with the goals set for the credit institution. Thus, risk-based internal control system, which allows timely identification of shortcomings and violations in its activities, as well as prompt response to changes in the internal and external environment to prevent negative results, could provide such countering for the bank.

About the authors

Mikhail S. Veretin

Moscow University of the Ministry of Internal affairs of Russia named after V.Ya. Kikot

Author for correspondence.
Email: verbep@yandex.ru
ORCID iD: 0000-0003-3090-8389

Major of Police, Operation fficer of the National Central Bureau of Interpol of Russia, Postgraduate student of the Moscow University of the Ministry of Internal Affairs of Russia named after V.Ya. Kikot

2 Akademika Volgina St, 2, Moscow, 117437, Russian Federation

References

  1. Azhogina, N.N. (2022). The use of modern technologies in the organization of internal control of a commercial bank. State and municipal management. Scientific notes, 1, 70–74.
  2. Bekbotova, L.A. (2022). Internal control system in a commercial bank. Innovations. The science. Education, 50, 958–962.
  3. Golovachenko, S. (2022). Compliance control and its place in the bank’s internal control system. Bank Bulletin, (8), 23–32.
  4. Kasyuk, E.A. (2015). Internal control in the management system of an economic entity: modern methods and approaches to assessing the improvement of its effectiveness. Bulletin of the Omsk University, 4, 82.
  5. Kharchenko, E.V. (2022). Banking risks: creation of a new management system. Bulletin of the Volodymyr Dahl Lugansk State University, (4), 148–151.
  6. Kuznetsova, E.I. (2014). On the issue of state strategic planning in ensuring economic security. National Security / nota bene, 3, 366–371.
  7. Kuznetsova, E.I. (2009). Economic security as a value orientation of the regional economic strategy. National interests: priorities and security, (7), 38–42.
  8. Lavrentiev, V.A. (2022). It-technologies in the operational risk management system under sanctions on the example of a commercial bank. Innovative economy: prospects for development and improvement, 2(60), 26–31.
  9. Mamedova, E.F., & Yankina I.A. (2022). Risk appetite and security of banking services in modern Russia. Business. Education. Right, (2), 110–116. https://doi.org/10.25683/VOLBI.2022.59.244
  10. Meshkova, E.I. (2022). Methods of risk and capital management in banks and banking groups in Russia. Financial markets and banks, 2, 60–66.
  11. Mironova, S.Yu. (2012). Operational risk management in a commercial bank. Audit and financial analysis, 2, 386–395.
  12. Tsertsvadze, N.T. (2022). Operational sustainability, operational risks as an element of bank performance management. Development of the knowledge system as a key condition for scientific progress: Collection of scientific papers, 53–57.
  13. Veretin, M.S. (2020). Assessment of the impact of operational risks on the economic security of the banking system. Bulletin of the Moscow University of the Ministry of Internal Affairs of Russia, 2, 257–61.
  14. Veretin, M.S. (2021). Analysis of the impact of operational risks on the economic security of commercial banks. Age of quality, 2, 108–122.
  15. Veretin, M.S. (2018). Manifestations of modern types of shadow processes in the banking sector. Uchenye zapiski Rossiiskoi Akademii predprinimatel’stva, 17(1), 157–161.
  16. Yudaeva, K.A. (2022). Internal control of a credit institution. Issues of sustainable development of society, 5, 582–587.
  17. Zaporozhskaya, K.A. (2022). Measures to ensure the economic security of a commercial bank. Scientific Almanac of the Central Chernozem Region, 1–3, 97–100.
  18. Zintsov, A.D. (2022). The role of the internal control system of a commercial bank on the example of Sberbank PJSC. Waste and resources, 9(1). https://doi.org/10.15862/18ECOR122

Copyright (c) 2023 Veretin M.S.

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

This website uses cookies

You consent to our cookies if you continue to use our website.

About Cookies