Integrated Credit Risk Management Model: Transforming the Risk Management Function into a Value Creation Driver

The study examines the transformation of banking risk management approaches in the context of digitalization and new regulatory standards. The paper justifies the transition from fragmented control methods to a comprehensive system that integrates prudential requirements with strategic goals for increasing shareholder value. A methodology is formulated for integrating Economic Value Added (EVA) and Risk-Adjusted Return on Capital (RAROC) with capital adequacy ratios and Expected Credit Loss (ECL) predictive models. The author demonstrates that the synergy between financial efficiency tools and prudential hedging allows the risk management function to evolve from a technical cost center into an active driver of competitive advantage. The results can be utilized by commercial banks to optimize capital allocation and strengthen financial stability under macroeconomic uncertainty.

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