The Strategic Approach to Crisis Management in Banks of Ukraine

Abstract

The article is aimed at improving existing theoretical and practical aspects, as well as substantiating the strategic approach in the crisis management of banking institutions. Considering the review of the existing scientific heritage, the authors noted that the anti-crisis strategic management of bank should be based on the appropriate conceptual basis. It is determined that the priority of functioning of bank and its task in preventing and neutralizing a crisis is an approach based on the interconnection of resources, opportunities, competitive advantages and strategy, taking into account monitoring of the environment of banking business, its dynamism and unpredictability. It is specified that the systemization of strategies should be based on key characteristics, delineation of their types, conditions and sphere of application. According to the authors, the anti-crisis strategy of managing the activities of banks should be formed and implemented at three hierarchical levels of administration: the bank as a whole; the bank’s divisions; the functional-operational level, using appropriate corporate, business and functional anti-crisis strategies. On the results of the study, the authors propose a systematization of the banks’ anti-crisis strategies in the plane of a number of criteria, such as: hierarchical level of management; sources of financing; functional focus; methods of identification and ways to react towards crises and threats; nature of the adoption and implementation of anti-crisis managerial decisions; life cycle of the bank’s development and the extent of a crisis; sources and nature of the emerging crisis developments. It is also noted that the provision of an anti-crisis strategy with financial resources involves their mobilization at the expense of internal and external sources that, depending on the extent of a crisis and the nature of the anti-crisis measures, results in allocating a strategy of crisis management based on the internal financial resources and a strategy of the external sources of financing. Prospect for further research in this direction is the need to develop a methodical instrumentarium for diagnostic of the type and extent of a crisis at macro- and micro-levels with the allocation of appropriate preventive and reactive instruments of the crisis management in banks.

Keywords

• crisis
• crisis management
• banking institutions
• strategy
• preventive management
• reactive management