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Managing Risks in Commercial Banks

Author

Listed:
  • Umit Karagozlu

    (Lyceum Chernomorsky, Ukraine)

Abstract

The paper discovers the nature and types of risks in the banking sector. Author found a variety of risks and their high importance for micro- and macroeconomic processes. The challenges of managing risks in commercial banks are defined. Author concluded that the risk management process requires not just minimizing risks, but optimizing them, i.e. selecting a level of risk at which the combination of risk and expected revenues from the sale of banking products and services would be the most rational.

Suggested Citation

  • Umit Karagozlu, 2016. "Managing Risks in Commercial Banks," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(4), pages 250-263, November.
    • Handle: RePEc:ods:journl:v:5:y:2016:i:4:p:250-263
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    File URL: http://www.jami.org.ua/Papers/JAMI_5_4_250-263.pdf
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    References listed on IDEAS

    as
    1. Castro, Vítor, 2013. "Macroeconomic determinants of the credit risk in the banking system: The case of the GIPSI," Economic Modelling, Elsevier, vol. 31(C), pages 672-683.
    2. Mihir Dash, 2013. "A Study of the Impact of Asset-Liability Management on the Profitability of Banks in India," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 2(4), pages 230-234.
    3. Andri Dan Traustason & Hilmar Þór Hilmarsson, 2016. "Iceland-UK Interconnector: A Brief Analysis of Possible Political Risk Mitigation and Dispute Settlement," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(1), pages 66-74, February.
    4. Mihir Dash & Ravi Pathak, 2016. "Canonical Correlation Analysis of Asset-Liability Management of Indian Banks," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(2), pages 75-81, May.
    5. Anatoliy G. Goncharuk, 2016. "Banking Sector Challenges in Research," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(1), pages 34-39, February.
    6. Roman I. Koryakov, 2012. "Impact of high credit interest rates on establishing risk management in a bank," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 1(3), pages 369-374.
    7. Vyacheslav А. Vakaliuk, 2014. "Risks of Implementing the Strategy for Regional Innovation Development," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 3(1), pages 52-56.
    8. Nahil Boussiga & Ezzeddine Abaoub, 2015. "How Does Government Policy Affect Equity Risk Premium?," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(2), pages 65-75.
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    Citations

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    Cited by:

    1. Ziyi Li & Xiaosong Zheng, 2017. "A Critical Study of Commercial Banks' Credit Risk Assessment and Management for SMEs: The Case of Agricultural Bank of China," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(2), pages 106-117, May.
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