EVOLUTION OF THE CONCEPTS OF FINANCIAL RISK MANAGEMENT IN COMMERCIAL BANKS
Subject/ Topic Effective financial management plays a significant role in improving risk tolerance of commercial banks. With time financial risk management concepts became more complex. In the process of complication of financial systems of different countries, the new types of risks and penetration channels were generated, and the degree of their impact changed. The influence of these new risks on the performance indicators of the particular credit institution has forced the researchers to develop new methods and tools that could be applied for maintaining the acceptable level of risks. The problems of financial risks management in commercial banks have received special attention in the context of the global financial crisis. Goals/Objectives This work analyzes the classifications of financial risks of commercial banks and classifies the methods of financial risk management in Russia. Methodology This research was carried out by the means of general scientific methods of research, methods of comparison and scientific generalization, graphical representation of the received results. Conclusions and Relevance Initially financial risk management involved only procedures for becoming aware of risks and the methods of risk analysis. Later the attention was switched to the assessment of their impact and relevant responding to this impact. Currently all the main concepts involve choices of the options: how much risk to take and how to manage these risks most effectively. The modern approach is to see the financial function of banks as the active policy in changing conditions, directly involving it in the subsequent decisions. Consequently, the modern concept of financial risk management is based on the preventive risk management methods.