Improving economic security of the commercial banks based on internal control of the operational risk
- Authors: Veretin M.S.1
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Affiliations:
- Moscow University of the Ministry of Internal affairs of Russia named after V.Ya. Kikot
- Issue: Vol 31, No 1 (2023): CONTOURS OF GLOBAL TRANSFORMATIONS
- Pages: 107-119
- Section: Monetary and financial questions
- URL: https://journals.rcsi.science/2313-2329/article/view/324345
- DOI: https://doi.org/10.22363/2313-2329-2023-31-1-107-119
- EDN: https://elibrary.ru/REWLKX
- ID: 324345
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Abstract
New regulation of the operational risks established by Bank of Russia Regulation No. 744-P dated December 7, 2020 “On the procedure for calculating the amount of operational risk (“Basel III”) creates new opportunities for the banking sector for capital optimization to cover this type of risk. However, in recent years, financial operating losses (the damage from crimes committed in the credit and financial sector in Russia in 2021 exceeded 386 million rubles) confirm the fact that the risk from the realization of risks is more significant. The reasons are wide variety of the operational risks, high dynamics in the detection of new types, as well as their more secretive nature in detection with other risks, which has a sharply negative impact on the security of the bank. Nevertheless, the optimization is impossible without countering threats to economic security. In our opinion, the set conditions are best met by a risk-based internal control system within a particular credit institution. The Basel Committee underpin the need for building an internal control system based on the recognition and assessment of the risks assumed by the bank, and their relationship with the goals set for the credit institution. Thus, risk-based internal control system, which allows timely identification of shortcomings and violations in its activities, as well as prompt response to changes in the internal and external environment to prevent negative results, could provide such countering for the bank.
About the authors
Mikhail S. Veretin
Moscow University of the Ministry of Internal affairs of Russia named after V.Ya. Kikot
Author for correspondence.
Email: verbep@yandex.ru
ORCID iD: 0000-0003-3090-8389
Major of Police, Operation fficer of the National Central Bureau of Interpol of Russia, Postgraduate student of the Moscow University of the Ministry of Internal Affairs of Russia named after V.Ya. Kikot
2 Akademika Volgina St, 2, Moscow, 117437, Russian FederationReferences
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