Present-day realities of risk management in the activity of Ukrainian banks

Modern development of banking business is connected with significant risks, which, taking into account globalization processes, political, economic problems in Ukraine and
worldwide, development of technological and information systems, tend to transform,
therefore it is very difficult to identify them and take preventive measures concerning
their smoothing. Taking the abovementioned into account, it is reasonable to assess the
modern state of risk management in the activity of Ukrainian banks and the influence on
banking system development. For this purpose, the authors analyzed the performance of
Ukrainian banks in the period 2008–2017 based on official statistic data of the National
Bank of Ukraine and measures of economic standard of banking activity; studied the
modern state of performing risk management in Ukrainian banks. The authors offer the
process of effective organization of risk management system in national banks, which is a
prerequisite for safe management of the bank. During the study, the authors found the significant decrease in the share of credits in total assets of Ukrainian banks and low quality of assets of Ukrainian banks during 2008–2017. This is caused by the significant amount of loan arrears, during the study period, the amount of loan arrears in 2016 increased by 36 times in comparison with 2008. The authors point to the need for improvement of assessment of banks’ riskiness, as a result of which they offer to use the methods of descriptive statistics for assessing risks and identifying them at all levels of banking activity.