Peculiarities of risk management in systemically important banks of Georgia

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dc.contributor.authorGhudushauri, Leila
dc.date.accessioned2026-03-12T12:56:42Z
dc.date.available2026-03-12T12:56:42Z
dc.date.issued2024
dc.description1. საქართველოს ეროვნული ბანკი - რისკებზე დაფუძნებული საზედამხედველო ჩარჩოს - რისკების შეფასების საერთო პროგრამის (GRAPE) სახელმძღვანელო, თბილისი, 2022. https://nbg.gov.ge 2. თიბისი ბანკი-მმართველობითი ანფარიში 2023, https://tbcbank.ge 3. საქართველოს ბანკი - მმართველობითი ანგარიშგება 2023, https://bankofgeorgia.ge 4. ლიბერთი ბანკი - მმართველობითი ანგარიშგება 2023, https://libertibank.ge 5. https://www.creditriskmonitor.com – credit risk monitor
dc.description.abstractAt the present stage, global trends in the development of the banking system, the increasing flow of new financial products and technological innovations, fierce interbank competition, instability of economic processes and constant volatility of the financial services market lead to a sharp increase in banking risks, which can have a negative impact on the solvency and profitability of banks. Therefore, the identification, analysis, assessment and effective risk management are crucial for the liquidity and stability of the banking system, as well as for ensuring the protection of depositors. The article discusses and analyzes the features and problems of risk management in systemically important banks of Georgia (Bank of Georgia, TBS Bank and Liberty Bank), and expresses opinions on the main directions for improving risk management. Keywords: risk management; systemically important banks; GRAPE–General Risk Assessment Program; risk management model "Three lines of defense”; risk appetite. Effective functioning of banks depends on several key factors, namely: proper banking management (strategic planning, analysis, regulation and control of banking activities, as well as management of operations, finance, personnel and marketing activities) and banking risk management strategies (identification of risk types, assessment and corresponding ongoing control by the unit). Systemically important banks of Georgia, despite the numerous causes of banking risks, manage to successfully combat them, which is, first of all, a correctly chosen strategy and dispersion of the team of professionals. Nevertheless, for the further development of commercial banks, changes are important and appropriate that will reduce banking risks for both creditors and depositors, which, in turn, will lead to further improvement of the bank's performance indicators. In addition, banks should focus on diversification of liabilities, namely, on the distribution of risks across different assets, geographic regions and sectors. Therefore, the expected negative consequences will not have a major impact on the financial sector. In order to protect against risks, it is advisable for banks to use the capabilities of modern hedging and insurance systems, the formation of sufficient capital reserves, as well as the implementation and development of modern IT systems, in particular artificial intelligence and the latest electronic systems for express analysis. At the same time, it is very important for banks to create and improve an optimal and rational internal control system in order to promptly identify and reduce the negative results of their activities. This process requires the active participation of employees and continuous improvement of their skills through training.
dc.identifier.citationIX International Scientific Conference: "Challenges of Globalization in Economics and Business", Proceedings , Tbilisi, 2024, pp. 338-344
dc.identifier.isbn978-9941-36-414-3
dc.identifier.urihttps://dspace.tsu.ge/handle/123456789/2716
dc.language.isoother
dc.publisherIvane Javakhishvili Tbilisi State University Press
dc.titlePeculiarities of risk management in systemically important banks of Georgia
dc.typeArticle
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