Research and improvement of the financial guaranteeing process at Raiffeisen Bank Aval, PJSC in the context of cooperation development with subjects of foreign economic activity
Students Name: Bakai Ihor Ihorovych
Qualification Level: magister
Speciality: Management Сustom Activity
Institute: Institute of Economics and Management
Mode of Study: part
Academic Year: 2021-2022 н.р.
Language of Defence: англійська
Abstract: The process of financial guarantee in the case of cooperation in foreign markets acts as a way to secure the obligations of one entity to another, financial guarantee is used in foreign economic activity when concluding various types of international contracts, tenders, loans from external counterparties [2]. However, as a marketing tool, the financial guarantee process is an indicator of conformity of the product, 8 which is declared for sale in accordance with the declared seller of the product, quality and uniqueness, technical compliance in accordance with the documentation and financial equivalent [5]. A financial guarantee in the banking sector is understood as any payment obligation of a bank to receive funds, for example, an obligation to make a payment for a customer of the bank in case of non-fulfillment of its payment or other types of obligations [4]. Bank financial guarantee is provided so that the business entity has the opportunity to participate in tenders or be a participant in the public procurement process under budget financing [1]. The object of research is PJSC "Raiffeisen Bank Aval". The subject of the research is the process of financial guaranteeing of PJSC Raiffeisen Bank Aval. The purpose of the study is to improve the process of financial guarantee of PJSC "Raiffeisen Bank Aval" in terms of developing cooperation with foreign economic entities. According to the results of the study of the problems of PJSC "Raiffeisen Bank Aval" related to the process of financial guarantee, it was determined that the organization is constantly faced with different types of risks in this area, the amount of which increases with each analyzed period. in the latter. It was also noted that the company does not have a structured scheme of control, regulation and constant monitoring of the financial guarantee process. The first recommended measure provides for the development of a phased risk management model for the financial guarantee process. This model will provide a financial guarantee risk management process that will provide a structured approach to addressing risk issues, reducing risk and reducing the costs associated with the occurrence of risk events. The second measure is to introduce a model for monitoring the financial guarantee process. The developed model includes the sequence of monitoring the process of financial guarantee, which will ensure timely identification of existing problems in this area and the minimum level of resource costs for their elimination. 9 The strategic indicator is the return on equity. The absolute value of the indicator, due to the improvement of the financial guarantee process, should increase by 1.8, which was achieved by increasing the value of net total income by 2.1%. Expenses related to the improvement of the financial guarantee process of PJSC Raiffeisen Bank Aval amount to UAH 80.3 thousand per year and are fully covered by its own sources of financing. Keywords - guarantee, finance, banking, subject of foreign economic activity, monitoring, risk management.