Digital risk management tools in ensuring bank financial stability
Abstract
The object of this study is the process of interaction between regulatory requirements and digital technologies within the risk management system of a modern bank. The key characteristics of the object under study include its high level of integration into the international architecture of banking regulation (Basel III standards, IFRS 9) and the active use of innovative technological solutions such as machine learning, Big Data analytics, RegTech tools, and cloud services to ensure operational continuity.
Problem statement. The core research problem lies in the fundamental transformation of the logic of banking risk management under the dual pressure of stringent regulatory constraints and rapid technological progress. In conditions of macroeconomic instability and wartime shocks, risk management ceases to be merely an internal control function and becomes a strategic instrument for ensuring the overall financial stability of a banking institution.
Unresolved issues. Despite the significant body of academic literature, digitalization and regulatory aspects are often examined as isolated processes. In particular, the systemic relationship between specific regulatory standards and the development of digital analytical tools remains insufficiently explored, as does the manner in which these technologies enable banks to stabilize capital adequacy (CAR/H2) and liquidity coverage (LCR) indicators in real time.
Purpose of the article. The purpose of the study is to provide a theoretical substantiation of the role of regulatory standards as an institutional driver of risk management digitalization and to determine the mechanisms through which digital tools influence the financial stability of a bank in a dynamic environment.
Main material. The article analyzes the regulatory framework of the National Bank of Ukraine and international standards (ICAAP, ILAAP) that shape requirements for banks’ analytical infrastructure. Practical cases of leading institutions (PrivatBank, Oschadbank) regarding the implementation of cloud technologies and artificial intelligence are examined. Methods of logical generalization and graphical modeling are applied to develop a four-level framework describing the interaction between regulatory requirements, digital tools, risk parameters, and financial stability indicators.
Conclusions. The study demonstrates the existence of a stable bidirectional relationship between regulatory norms and digitalization: regulatory requirements act as an institutional driver of digital transformation, while digital tools contribute to reducing risk parameters and stabilizing regulatory indicators. The findings have theoretical significance for the development of the concept of bank financial stability and practical relevance for improving risk management systems within a dynamic regulatory environment
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