Risks of Electronic Banking and Their Classification

Today, along with the obvious benefits, the electronic banking system led to the emergence of additional risks in the banking business, which upon the occurrence of risk events can lead to significant financial losses for banks and their clients. The object of the article is the determination and analysis of the electronic banking risk types with the formation of their classification system. Foreign experience of the electronic banking risk classification is studied and the proper system of risk classification under conditions of electronic service of clients has been proposed. Nature of the principal electronic banking risks has been analyzed (strategic, operational risks and liquidity and reputation risks). Main causes of each of these risks appearance were determined. It was discovered that introducing of innovative forms of remote banking service of clients does not generate new risks, but only expands the traditional risks` profile and creates new sources of their origin. It was proved that electronic banking risks are in close interaction, but their specific occurrence depends on the sources that cause them.