Risk Management in Banking
Major: Finance, Banking and Insurance
Code of subject: 7.072.03.E.040
Lecturer: Doctor of the Sciences (in Economic), Professor Khoma Iryna Borysivna
Semester: 3 семестр
Mode of study: денна
Завдання: The study of an educational discipline involves the formation of competencies in students of education: professional (special): SK4. The ability to evaluate the effectiveness of scientific, analytical and methodical tools for justifying management decisions in the field of finance, banking and insurance. SK9. Ability to develop technical tasks for the design of information systems in the field of finance, banking and insurance. SK12. The ability to adapt and implement international standards and regulations in the practical activities of corporations in terms of managing assets, capital, investments, financial results, financial risks. SK13. The ability to develop strategies for making managerial decisions in the field of finance, banking and insurance based on the principles of liberal arts and science education. Professional competencies of professional direction 3 (PCD-3) "Financial market": PCD-3. The ability to transform the skills and abilities of scientific research into the management of strategic development of the financial market and its participants, improvement of banking state regulation, internal audit and controlling, management of banking risks, design of banking products and services, taking into account the peculiarities of using the European banker's certificate.
Learning outcomes: PR01.Use the fundamental laws of finance, banking and insurance in combination with research and management tools for professional and scientific activities in the field of risk management in banking. PR03. Carry out adaptation and modification of existing scientific approaches and methods to specific situations of professional activity to optimize the level of risk in banking. PR09. Apply management skills in the field of finance, banking and insurance to have the skills to organize and operate a risk management system in the bank and identify the causes and risk factors. PR15. To present the results of one's own research, in particular, by preparing scientific publications and speaking at scientific events. PR17. To justify directions for improving the financial and tax policy of the state, financial and non-financial corporations. PR18. Choose methods of adaptation and ways of using international standards and regulations in the practical activities of a professional in the field of finance. PR21. Choose and apply theoretical and applied methods and models of anti-crisis management in the field of finance, banking and insurance. Teaching methods: information-receptive method, reproductive method, heuristic method, method of problem statement, spectrum of economic and mathematical methods, method of probability theory, method of mathematical expectation; research method, method of deviations; method of interpolation of functions.
Required prior and related subjects: prerequisites: Market of financial services, Banking management, Modeling of activity on the insurance market. co-requisite: European banker's certificate, State regulation of banking activities, Internal audit and banking controlling, Design of banking products and services.
Summary of the subject: The concept of risk in banking. Classification of bank risks. Credit and investment risk. Currency and interest risk. Theoretical principles of economic risks in the banking risk management system. Identification of bank risks. Bank risk assessment methodology. Quantitative indicators of bank risk assessment. Scale for assessment of bank risk parameters. Management of financial risks in a bank. Management of credit and investment risks in a bank. Bank hedging risks. Strategy of management of functional risks of the bank. Bank risk control. Problems and trends of risk management and insurance in the banking sector in the implementation of operations and services in the global derivatives market. Risks associated with options and risk assessment of certain types of stock instruments.
Опис: The concept of risk in banking. Classification of banking risks. Credit and investment risk. Currency and interest rate risk. Theoretical foundations of economic risks in the risk management system of banking. Identification of banking risks. Banking risk assessment methodology. Quantitative indicators of banking risk assessment. Scale for evaluating parameters of banking risks. Financial risk management in the bank. Management of credit and investment risks in the bank. Hedging risks in the bank. Functional risk management strategy of the bank. Control over banking risks. Problems and trends of risk management and insurance in the banking sector when conducting operations and providing services on the global derivatives market. Risks associated with options and risk assessment of certain types of stock instruments.
Assessment methods and criteria: Methods of monitoring the knowledge and skills of the student of education when studying the discipline include: 1. Current control of the work of the student of education: - Test survey at the State Internal Revenue Service; - Oral examination in practical and laboratory classes; - Solving practical problems and modeling situational exercises using the information-receptive method, research method; research-statistical method, economic-statistical method, reproductive method, spectrum of economic-mathematical methods, including the method of the theory of probabilities, the methods of structural-functional and system-complex diagnostics, the method of analysis and synthesis; method of induction and deduction; decision-making method; optimization method, etc., and design of solutions in the form of reports and independent works; - Carrying out laboratory work using the experimental and statistical method, the decision-making method, the method of analysis and synthesis; the method of optimization, the method of priority and weights of banking risks; information-receptive method, reproductive method, heuristic method, the method of problem statement, the spectrum of economic and mathematical methods, in particular the method of the theory of probabilities, the method of mathematical expectation; research method, method of deviations; method of interpolation of functions. - Carrying out an individual research task (according to the methodical recommendations of the teacher) using the information-receptive method, the research method; research-statistical method, economic-statistical method, reproductive method, spectrum of economic-mathematical methods, including the method of the theory of probabilities, the method of decision-making and its defense in a practical session. 2. Final control (differentiated assessment): based on the total results of the current control
Критерії оцінювання результатів навчання: • Current control: thematic control of the level of knowledge during the semester by the results of conducting practical classes, oral questioning (70%). • Final control (control measure, differential grade): performance of an individual research task, writing-oral form (30%).
Порядок та критерії виставляння балів та оцінок: Assessment of the knowledge of students in the discipline "Risk Management in Banking" is carried out on the basis of a differentiated assessment, which is conducted at the end of the semester. The final control consists of the current assessment of the acquired knowledge in laboratory classes through the implementation and defense of 6 mandatory laboratory works - 20 points, solving problems in practical classes using an individual approach and an oral survey in these classes or with the participation of video conferences - 10 points (in conditions of martial law or quarantine), performance of control work and passing a test survey in the National Emergency Service - 20 points, and performance and defense of an individual research (final) task with a prepared presentation (or preparation for publication of a scientific article) - 50 points.
Recommended books: 1. Resolution of the Board of the National Bank of Ukraine dated July 21, 2022 No. 154 "On Amendments to Resolution No. 18 of the Board of the National Bank of Ukraine dated February 24, 2022". 2. Resolution No. 57 of March 21, 2022 "On Amendments to Certain Regulatory Acts of the National Bank of Ukraine." 3. Resolution No. 18 of February 24, 2022 "On the operation of the banking system during the introduction of martial law" as amended by resolutions of the Board of the National Bank of Ukraine dated July 21, 2022 No. 154 (amendments made by subparagraph 3 of paragraph 1 of the resolution of the Board of the National Bank of Ukraine dated July 21, 2022 N 154, entered into force on July 25, 2022) 4. Law of Ukraine “On Banks and Banking Activity” as amended № 532-V of December 22, 2007, № 661-VI of December 12, 2008 and as of March 2, 2015 № 218-VIII, as amended and supplemented on June 30 2021 N 1587-IX 5. Law of Ukraine "On the National Bank of Ukraine" of 20.05.1999, as last amended № 1587-IX of 30.06.2021. 6. Instruction "On the procedure for regulating the activities of banks in Ukraine" approved by Resolution № 368 of 28.08.2001 as amended № 57 of 22.06.2021. 7. Resolution on approval of Amendments to the Instruction on the procedure for regulating the activities of banks in Ukraine (as amended in accordance with the Resolution of the National Bank № 157 of 24.12.2019) 8. Shklyaruk S.G. Management of financial risks: textbook / S.G. Shklyaruk. - Kyiv: SE "Ed. House "Staff", 2019. - 494 p. 9. Orel S.M. Risk: basic concepts: textbook / S.M. Orel, M.S. Painted. - Lviv: Lviv Polytechnic National University Publishing House, 2018. - 87 p. 10. Pikus R.V., Prykazyuk N.V. Financial risk management. National University of Kyiv of Taras Shevchenko. - Kamyanets-Podilsky: Axiom, 2015. - 227 p. 11. Banking Risk Management: Textbook. Manual / For the head. ed. Dr. Econ. Sciences, Prof. Primostki L.O. - К .: КНЕУ. - 2014. - 600 p. - [Internet resource]. - Access mode http://www.idea.com.ua. 12. Podchesova V.Yu. Banking risk management: a reference syllabus of lectures. - Kharkiv: HIBS UBS NBU, 2014. - 83 p. 13. Starostina AO Risk management: theory and practice: textbook. manual / AO Starostina, VA Kravchenko. –K .: IOC Polytechnic Publishing House, 2014. –300 p. 14. Banking risk management: monograph: in 2 volumes / A.O. Epifanov, T.A. Vasilieva, SM Kozmenko and others. ; for ed. A.O. Epifanova, T.A. Vasilieva. - Sumy: SHEI "UABS NBU", 2012. - 283 p. 15. Methodical instructions on inspection of banks “Risk assessment system”, approved by the resolution of the Board of the National Bank of Ukraine of 15.03.2004 № 104 [Electronic resource]. - Access mode: http://www.zakon.rada.gov.ua. 16. Methodical recommendations on the organization and functioning of risk management systems in banks of Ukraine, approved by the resolution of the Board of the National Bank of Ukraine dated 02.08.2004 № 361 [Electronic resource]. - Access mode: http://www.zakon.rada.gov.ua. 17. Khoma Iryna. Financial modelling of an impact of investment maintenance on the condition and diagnostics of economic protectability of enterprises / Management, finance, economics: modern problems and ways of their solutions: collective monograph / Zhydovska N., – etc. – Іnternational Science Group. – Boston : Primedia eLaunch, 2021. 615 р. - PP. 136-146. 18. Khoma I.B. Optimization of credit risk from the standpoint of protection of banking institutions: theoretical and applied principles / I.B. Khoma, Yu.V. Myrhorodets // Electronic scientific journal "Azov Economic Bulletin". - Issue 1 (24), 2021. - P. 196-201. 19. Khoma I. The mechanism of control and management of financial risks in business I. Khoma, O. Poburko // Information and innovation technologies in economics and administration: monograph. – (Series of monographs Faculty of Architecture, Civil Engineering and Applied Arts ; monograph 27) - Katowice School of Technology ; edited by O. Chukurna, M. Gawron-Lapuszek. - Wydawnictwo Wyzszej Szkoly Technicznej w Katowicach колективна монографія / P. Horyslavets, N. Dobosz, A. Kazarian, K. Beregovska, V. Teslyuk, Y. Pozdnyakov, M. Lapishko, R. Feshchur, M. Tymoshchuk, S. Shyshkovskyi, A. Manila, I. Khoma, O. Poburko, I. Bakushevych, Y. Bakushevych, O. Slyusarchuk, Y. Slyusarchuk. – Katowice: Wydawnictwo Wyzszej Szkoly Technicznej w Katowicach, 2019. – 267 р. – РР. 218-231. 20. Khoma I.B. Features of currency risk management / Proceedings of the International scientific-practical conference "Risk management in the financial sector" (International scientific conference on risk management in the financial sector), December 6-7, 2019 / Educational and Scientific Institute of Economics and Management Lviv Polytechnic National University. - Lviv: SPOLOM, 2020. - 68 p. - P. 14-16. 21. Khoma I.B. Innovative approaches to investment portfolio risk management: financial tools and mathematical apparatus / I.B. Khoma // Innovative technologies in the development of modern society: materials of the II International scientific-practical conference, October 8, 2020 - Educational and Scientific Institute of Entrepreneurship and Advanced Technologies of the National University "Lviv Polytechnic". - Lviv. - Lviv: Lviv Polytechnic Publishing House, 2020. - Access mode: http://ippt.lpnu.ua/documents/materialy_2_npk_2020.pdf free. - P. 103-107. - 150 p. 22. Khoma I.B. Clarification of the allowable error during the application of the interpolation method to find the optimal ways to neutralize the risks of the investment portfolio / I.B. Khoma // Economic space: Collection of scientific works. - № 156. - Dnipro: PDABA, 2020. - p. 226. - P. 221-225. 23. Politylo Mariia, Khoma Iryna, Chubka Olha, Yaroshevych Natalia, Yakymiv Andriy. FINANCE, MONEY AND CREDIT: Tutorial. Lviv: Novyi svit-2000, 2022. 234 p. 24. Khoma I. FEATURES OF CURRENCY RISK MANAGEMENT IN THE SYSTEM OF FINANCIAL AND ECONOMIC PROTECTION OF ENTERPRISES: Scientific Foundations in Economics and Management: collective monograph / Kovalenko V., Lyutyy I., Zatonatska T., – etc. – Іnternational Science Group. – Boston : Primedia eLaunch, 2022. 653 р. – PP. 261- 268.
Уніфікований додаток: Lviv Polytechnic National University ensures the realization of the right of persons with disabilities to obtain higher education. Inclusive educational services are provided by the Service of accessibility to learning opportunities "Without restrictions", the purpose of which is to provide permanent individual support for the educational process of students with disabilities and chronic diseases. An important tool for the implementation of the inclusive educational policy at the University is the Program for improving the qualifications of scientific and pedagogical workers and educational and support staff in the field of social inclusion and inclusive education. Contact at: St. Karpinsky, 2/4, 1st floor, room 112 E-mail: firstname.lastname@example.org Websites: https://lpnu.ua/nolimits https://lpnu.ua/integration
Академічна доброчесність: The policy regarding the academic integrity of the participants of the educational process is formed on the basis of compliance with the principles of academic integrity, taking into account the norms "Regulations on academic integrity at the Lviv Polytechnic National University" (approved by the academic council of the university on June 20, 2017, protocol No. 35).