BANK PROFITABILITY MANAGEMENT IN THE CONTEXT OF FINANCIAL RISK MANAGEMENT IN THE CONTEXT OF INDUSTRY 4.0

Abstract

The conditions of martial law and the digital transformation of the banking sector require new approaches to managing bank profitability, especially in the context of rising financial risks. The relevance of the chosen topic is driven by the need to adapt banking strategies to the challenges of Industry 4.0, which include automation, digitalization and the introduction of innovative technologies into financial processes. The purpose of the study is to identify effective approaches to managing bank profitability in an unstable risk environment, focusing on its components, principles of formation and factor influences. The object of the study is the profitability of banking institutions as an indicator of financial stability. The theoretical basis is the concepts of strategic profit management, anti-crisis risk management and financial diagnostics. In the course of the study, the methods of economic and statistical analysis, comparative dynamics, structural analysis and generalization were applied. The results of the study allowed to identify the key problems that hinder the growth of banks' profitability, in particular, an increase in credit risks, macroeconomic instability and poor adaptation to technological changes. The article also substantiates the ways to increase profitability in times of war, including: digital transformation of risk management, optimization of banking products and services, as well as improving the efficiency of internal control, optimization of the revenue structure, implementation of adaptive and product policies, integration of ESG approaches into the development strategy, institutional strengthening of internal control and compliance, digitalization of financial processes and introduction of smart technologies.  The practical value of the work lies in the formation of an adaptive bank profit management system that meets the modern requirements of financial security and the digital environment.