Bank Financial Risk Assessment in the Digital Background

Abstract

The article establishes that the effective management of banking risks should be based on the relevant fundamental research on the formation of an effective mechanism for regulating financial relations in the banking sector. The purpose of the study was to substantiate the theoretical and methodological foundations of effective banking risk management and develop practical recommendations for improving its effectiveness in the context of digitalization. The study utilized various scientific methods, including financial stability indicator analysis, economic standards evaluation, financial condition coefficient calculation, and testing the CAMELS system within the digitalization context. Bank risk management is crucial for sustainable development. Studying risk management enhances the Russian banking sector's financial stability. However, risk management in stable conditions differs significantly from digitalization. In the digital era, objectives, resource availability, support, and decision-making time change. The goal becomes avoiding major performance deviations caused by risks in active and passive operations and bank activities.