Correlation and regression analysis of jsc "kazkommertsbank" internal risk and financial position

Abstract

Purpose – At present, effective management of banking risks is a topical issue. We can observe from the theoretical issues and practical recommendations the insufficient development of the strategic management and development level of the bank in internal bank risk management. That is why the promotion and development of risk management structure is an essential element of bank internal control.
Methodology – the integrated use of the risk management methodology using the scientific and methodological framework of the sustainable development theory of the bank risk system. The correlation and regression analysis and forecast for the financial position of one of the banks were made.
Original/Value – The subject of authorship research is a brief description of modern approaches and methods of banking risk management and critical assessment of their practical value. The bank's risk management policy is aimed at identifying, analyzing and managing risks, limiting risks, and regularly evaluating the risk level and compliance with its limitations. The risk management procedures and policy are based on the econometric analysis of the bank's ten-year statistical data, taking into account changes in market conditions.
Findings – Risk management division provides the bank with effective working conditions in all sectors of the financial market, including interest rate changes, the state of operational risks, lower currency rates, bankruptcy of the borrowers, etc. as well as foresees the challenges ahead of time. The main task of banks' risk management is to develop and introduce risk management procedures as well as models for its assessment.