RISK APPETITE AND SAFETY OF BANKING SERVICES IN MODERN RUSSIA

This article assesses the appetite for risk and the conditions for ensuring the security of Russian banking services today in the context of the imposition of financial sanctions in response to a special military operation in Ukraine. International practice related to the bank’s statement on risk appetite (The Risk Appetite Statement (RAS)) defines a decentralized approach to ensuring the security of banking services in the country, therefore, the quality and improvement of the risk management system of Russian banks depends on the timely adequate restructuring and response of each commercial bank in Russia to the emerging trends, as well as to emerging external threats. It is methodologically important to build a coordinated system for managing, first of all, the operational risks of Russian banks in this difficult, changeable time, and not rely on the dogma annually established by the Board of Directors of each bank, taking into account legal requirements and strategic business goals. As a result of the study, key driver factors are identified that affect the risk appetite of a Russian bank in the face of increased international sanctions and financial prohibitions. The analysis of the current appetite for operational risk in a Russian commercial bank is carried out, the problems of its management are identified, and ways to ensure the security of banking services in the Russian Federation are proposed, taking into account the identified changes in the propensity of banks to risk, as well as the weakening of cyber security tools.

Russian commercial banks, risk management, risk appetite, bank’s propensity for operational risk, security of banking services, operational risk, international sanctions, financial bans, banking services, cyber security

Mamedova E. F., Yankina I. A. Risk appetite and safety of banking services in modern Russia. Business. Education. Law, 2022, no. 2, pp. 110—116. DOI: 10.25683/VOLBI.2022.59.244.