Izvestiya of Saratov University.

Economics. Management. Law

ISSN 1994-2540 (Print)
ISSN 2542-1956 (Online)

For citation:

Kirillov R. A. Theoretical Bases of Regulatory Risks Management in the Internal Control System of Banks. Journal Izvestiya of Saratov University. Economics. Management. Law, 2014, vol. 14, iss. 4, pp. 628-633. DOI: 10.18500/1994-2540-2014-14-4-628-633

This is an open access article distributed under the terms of Creative Commons Attribution 4.0 International License (CC-BY 4.0).
Full text PDF(Ru):
(downloads: 0)
Article type: 

Theoretical Bases of Regulatory Risks Management in the Internal Control System of Banks

Kirillov Roman Arkadevich, State University of Management

Introduction. The internal control system of large banks should be represented by two agencies: the Internal Audit Service, which will check the whole bank, all units of the credit institution for the manner in which they carry out established internal procedures of credit organization; and internal control service, which should identify the risks of losses due to violations of the laws or internal documents, evaluate regulatory risks, identify cases of conflict of interest, as well as to identify and analyze the operations that «are intricate and unusual nature», i.e., in fact, will serve as the international practice relating to the area of compliance. The emphasis of ICS’s work is transferred to the compliance risk management. Theoretical analysis. The comparative content’s analysis of the concepts of compliance risk and regulatory risk revealed that the concept of regulatory risk in the Russian economic practice is wider, systematic organized, relying on the regulatory framework of the Bank and may be taken as a base in technique of formation building of internal control service in bank. Results. Suggested the author’s definition of regulatory risk. Consideration of bank’s risks in their relationship with the violation of specific external and internal rules, regulations, standards and so on., allowed firstly, prove that the regulatory risk is the base for all other banking risks; secondly, to detect inadequate regulatory frameworks of Russian banks and justify the need for their development; secondly, to detect the imperfection of regulatory frameworks of Russian banks and justify the need for their development.

  1. O vnesenii izmenenij v Polozhenie Banka Rossii ot 16 dekabrja 2003 goda № 242-P «Ob organizacii vnutrennego kontrolja v kreditnyh organizacijah i bankovskih gruppah»: ukazanie Banka Rossii ot 24.04.2014 № 3241-U (On Amendments to the Bank of Russia Regulation of 16 December 2003 № 242-P «On organization of internal control in credit institutions and banking groups». Bank of Russia Directive, 2014, April 24. № 3241-U). Available at: http://www.cbr.ru/publ/vestnik/vestnik/ves140709063.pdf (accessed 7 November 2014).
  2. Pozdyshev V. A. Osnovnye izmenenija v bankovskom regulirovanii (Major changes in banking regulations). Available at: http://www.cbr.ru/publ/MoneyAndCredit/pozdishev_05_14.pdf (accessed 19 May 2014).
  3. Kozlov D. N., Yudenkov Yu. N. Kontrol’ i upravlenie reguljatornym riskom v banke (Control and management of regulatory risk in the bank). Available at: http://futurebanking.ru/reglamentbank/article/2092 (accessed 19 May 2014).
  4. Bortnikov G. P. Komplajens risk (risk nesobljudenija): mezhdunarodnye standarty i ih primenimost’dlja bankov v stranah SNG (Compliance risk (the risk of non-compliance): international standards and their applicability to banks in the CIS countries). Available at: http://www.iia-ru.ru/inner_auditor/publication/foreign_mass_me-dia_articles/bortnikov/ (accessed 19 May 2014).
  5. Ibragimov R. S. Ob upravlenii reguljatornymi riskami (On the management of regulatory risk). Available at: http://www.kluwerevents.ru/file/080930/Ibragimov.pdf (accessed 5 September 2013).