Sound banking and financial system is a necessary condition for the development and stability of the economy as a whole. In the process of their activities banks expose themselves to various types of risks and uncertainties. Moreover, risk acceptance is the major source of the bank’s income, so banks aim to manage risks, instead of completely avoid or eliminate risks in their activities. The book deals with the concept of risk and uncertainty, and examines the sources of bank risks, and formulates the main principles of risk management, discusses in detail current approaches to the assessment of financial risks in banking practice. The material was prepared for use in scientific research and educational process.

Keywords: Bank risks, risk management, risk evaluation, minimization of risk, credit risk, interest rate risk, liquidity risk, market risk, foreign exchange risk, off-balance-sheet risk, capital adequacy risk