Risk management strategies in corporate lending : a comparative study of Finnish and Ukrainian banks

Abstract

In this study, we focus on risk management strategies in traditional banks. Economic and geopolitical changes create factors that influence credit policy and increase business lending risks for banks. Risk management requires a new approach. A comparative analysis of risk management strategies, using the examples of Finnish and Ukrainian Banks, makes it possible to assess risk in different economic conditions and utilize the best practices of both countries for development.

The study aims to answer the questions:” How do banks assess and mitigate risk in corporate lending? How do cultural, economic, and regulatory differences influence the risk management strategies?” The objective is to identify the most effective risk management methods and provide insight into the strengths and weaknesses of the banking system, thereby enhancing its risk resilience.

The study uses various qualitative and quantitative research methods to examine banks' effectiveness in risk management. In-depth interviews with risk managers help us to understand their approach to building relationships and regulatory policies with clients.

The results showed that banks of both countries effectively manage risks in current conditions. The development of new tools provides new opportunities. Ukraine's experience in an unstable situation demonstrates the effectiveness of a flexible approach and the banking system's rapid adaptation for stable operation and economic support. The exchange of experiences between the two countries will increase the stability of the banks and ensure economic growth.