The purpose of the article is to study the economic essence and approaches to taxonomy and quantitative assessment of the bank’s operational risk, taking into account the evolution of standards defined by international institutions. The development of financial technologies, along with stochastic factors, require banks to adapt their own operations in response to new challenges or changes in existing threats affecting the operational sustainability of banking institutions. The statistics of the threatening impact of the frequency of events and cumulative losses from operational risk events are presented. It is noted that operational events can be quite diverse in nature, very unpredictable and threatening in general financial impact. This requires continuous improvement of the risk management system and timely validation of the bank’s operational risk assessment models. The article discloses the essence, sources, factors and operational events that are constantly evolving. Also the content of the model instrumentarium is disclosed. It is noted that the economic nature of operational risk has internal and external sources, several levels of their manifestation, covers all processes, products and systems of bank, including the human factor. The article generalizes taxonomy of operational risk according to various criteria. It is proved that it is the distribution of business lines that helps banks to more easily identify the types of operational risk events inherent in each individual bank, taking into account the peculiarities of their own business models. The multiplicity of operational risk events justifies the need for their adequate assessment and use of new methods for predicting and eliminating threats. The advantages of an actuarial approach are substantiated. Actuarial models can be used both at the level of «top – down» and the level of «bottom – up», have significant advantages in both methodological and practical aspects in calculating the amount of capital required to absorb risks from the implementation of risk events. The major shortcomings of the three main approaches proposed to the assessment of operational risk in Basel II (AMA, TSA, BIA) are highlighted. Updated by the Basel Committee, the standardized approach is a combination of best practices for assessing operational risk that can be applied in any bank, regardless of jurisdiction, size, and business model.

This study highlights the identification of risks and sources of their occurrence depending on the business areas of the bank’s activity. The analysis of financial risks is focused on the description of risks indicators of the business model of a bank, which is the object of the study, and is done by using economic and statistical methods. The study suggests to divide financial risks into significant, specific, corrective. It was noted that the proportions of risks are taken by the bank form a risk landscape. Based on a review of annual reports of the analyzed bank, the sources of potential losses for significant risks were identified. It is discovered that common sources of losses are methodological, organizational and managerial. Based on the analysis of the risk profile, it was determined that the market risk has a significant impact (31.27%), that is untypical and new for domestic banks. The classification of types of market risk according to the European experience is proposed. The structure and analysis of the “heat” risk map of the bank's business model show that credit risk has the most significant impact in the segment of corporate and private business. It is concluded that under the conditions of acceptance by the bank of significant risks, that is reflected on the amount of the required economic capital, the transition is needed from traditional profit-oriented risk management to risk-oriented one. Such approach will contribute to the reduction of potential financial expenses and increase the bank's soundness.

The article is aimed at studying foreign experience in improving the financial literacy of the population and possible ways of its implementation in Ukraine. The article substantiates the need to increase the financial literacy of the population in the context of strengthening financial inclusion. The level of financial literacy of the population of Ukraine, as reflected by the Financial Literacy Index, which is calculated according to the USAID methodology, is analyzed. Based on the study of theoretical and methodological approaches, the essence of the category of «financial literacy» is disclosed. Four areas of formation of cognitive knowledge, competences and skills as to the financial literacy of financially isolated and low-income citizens are defined: 1) availability of basic financial services; 2) availability of mobile banking services; 3) availability of microfinance; 4) availability of innovative FinTech solutions. The study of foreign experience demonstrated the development of various directions of improving financial literacy: 1) involving business in improving financial literacy; 2) improving the financial literacy of schoolchildren and young people; 3) improving the financial literacy of the poor population; 4) improving financial literacy in the workplace; 5) remote improvement of financial literacy; 6) national programs to improve financial literacy. The study of international best practices allowed to identify a number of problems in the domestic practice of strengthening financial literacy, namely: 1) insufficient work with vulnerable groups of the population (taking into account age and geography); 2) problematic age categories are: 18-24 years old (especially 18-19 years old) and over 60 years old; 3) rural population has low financial literacy; 4) a significant proportion of bank depositors do not know about the existence of guaranteeing deposits of individuals; 5) a small number of bank customers know that banks must disclose information about the real interest rate on loans. In order to increase the level of financial literacy of the population, taking into account the best foreign experience, the need to introduce the following measures is substantiated: 1) teaching children basic economic categories from an early age; 2) development of special compulsory financial literacy courses for schoolchildren; 3) creation of a system of teacher training; 4) popularization of the need to increase the level of financial literacy (master classes, round tables, lectures, seminars, conferences, methodological literature, etc.); 5) creation of information and advisory centers for providing assistance to the population on financial issues; 6) media involvement, use of social networks, development of websites, platforms for the development of financial literacy. Prospect for further research in this direction is the development of models for quantitative assessment of the impact of the level of financial literacy on financial inclusion by means of: 1) logistics regression; 2) Probit regression. Further attention require the management of risks associated with financial literacy, financial behavior and financial inclusion.

The article is aimed at researching the impact and directions of fintech risk management in the banking sector. The article identifies key tendencies in the development of fintech innovations for the banking sector and explores the potential impact of their implementation on banks. According to the results of the analysis, fintech risks are systematized and the essence of each of them is disclosed. It is defined that an efficient direction for improving the efficiency of fintech risk management is to establish cooperation between banks and fintech companies. The study of foreign and domestic practice allowed to distinguish four main areas of partnership with: 1) fintech companies operating outside the banking sector; 2) fintech companies offering fintech solutions for banks; 3) fintech companies supplying destructive technologies; 4) fintech companies relying on current bank offers. The main channels of fintech risk transmission to the banking sector are identified. It is determined that the consequences of the implementation of fintech risks are manifested through the following traditional banking risks: operational, compliance, strategic, reputational. It is proved that in most cases, the events of fintech risk implementation on different business lines will be classified as consequences of operational risk. It is determined that the management of fintech risks in the banking business should be based on generally accepted approaches to risk management, taking into account the business model of a credit institution. It is determined that minimization of the impact of fintech risks is facilitated by the regulation of cooperation with fintech companies on the implementation of fintech innovations (development of strategies, policies, procedures, methods). The prospect of further research in this direction is the development of models for quantitative assessment of fintech risks. A significant positive impact on the efficiency of risk management of banks will be the development of methodological recommendations for stress testing, taking into account fintech risks. In the future, there is a need to develop appropriate models for the impact of fintech risks on the balance sheet of banks and adequate stress scenarios.

The article is aimed at researching the theoretical-methodological and practical aspects of the bank’s currency risk management. To solve the tasks set, the authors use general scientific and specific methods, in particular: logic-dialectical, mathematical and graphic. Based on generalization, analysis and comparison of different approaches, the methods and instruments for managing the bank’s currency risk are systematized. The bank’s currency risks are typed and the main determinants of their occurrence are identified. The types of currency risk hedging instruments are systematized and their contents are disclosed. The essence of the bank’s currency position, the methodology of its account are disclosed and the necessity of compliance with the methodology are substantiated. The main operations that influence the bank’s currency position are identified. An analytical assessment of the currency position of banks is performed (JSC CB «PrivatBank», JSC «Oschadbank», JSC «Raiffeisen Bank Aval», JSC «A-Bank»); the model of maximization of the bank’s profits is computed and appropriate conclusions about their activities are drawn. With the use of economic-mathematical instrumentarium the dynamics of the hryvnia currency exchange rate are forecasted and the indicators of VaR for banks (JSC CB «PrivatBank», JSC«Oschadbank», JSC «Raiffeisen Bank Aval», JSC «A-Bank») are calculated according to different time horizons. It is determined that the model of minimization of currency risk through currency position management serves as an effective instrument for analyzing and substantiating internal limits of currency risk and permissible ranges of changes in financial results of the bank’s activity. Prospects for further research are: 1) development of an instrumentarium for currency risk assessment based on ARCH and GARCH models of various modifications; 2) development of macro stress tests with a focus on currency risk and taking into account the systemic characteristic, which is the transmission of currency risk to other sectors of both the financial market and the economy.