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THE CONCEPT OF RISK IN THE ACTIVITIES OF COMMERCIAL BANKS AND ITS 
ESSENCE 
Khujaxonova Sitora Baxtiyarovna
Assistant, T
а
shkent St
а
te University 
о
f Ec
о
n
о
mics, 
Tukhtabaev Jamshid Sharafetdinovich
PhD., Associate Professor, Department of Management
and marketing, Tashkent State University of Economics
Annotation. 
This article describes the risks inherent in the activities of commercial 
banks and measures taken to reduce their impact. Scientific proposals and recommendations 
have also been developed to reduce the risks associated with credit risks while ensuring the 
financial security of commercial banks. 
Keywords:
commercial banks, economic security, risk, banking, risk management, 
interest rate, economic efficiency, loss, profit. 
Modern banking is directly related to various risks, and effective management of them is 
one of the most important functions of banks. The risk is different in any banking transaction 
and is covered in different ways. In a market economy, it is very difficult to find risk-free 
transactions that guarantee the achievement of a predetermined financial result. It is 
important for commercial banks not to avoid risks, but to eliminate and minimize them. 
Banking risks began to be studied by economists back in the eighteenth and nineteenth 
centuries because of their importance as an object of study. However, there is no single 
approach to their essence. Many scientists attribute the causes of risk to circumstances, 
factors that lead to damage. I. V. Bernard and J. K. Colley interpreted "credit risk as a type of 
bank risk, which is an unforeseen event that may occur before the loan is repaid." The 
International Basel Committee, when assessing capital adequacy, defines credit risk as "the 
risk of default by the counterparty". 
It should be noted that the bank's risk is a category describing a specific situation in its 
activities, indicating that the expected result is negative and the results are uncertain. Two 
important aspects of bank risk should be taken into account: firstly, the ambiguity of the 
situation in which the decision is made; secondly, it is a negative change in the planned result. 
In this regard, it is advisable to pay attention to the following three categories: 
1.
Expenses: interest paid by the bank to depositors and creditors for borrowed funds, 
salaries of employees and other operating expenses. Risks in the implementation of banking 
expenses can take the following forms: an increase in interest costs on deposits due to 
changes in market conditions, an increase in their purchase price due to a lack of credit 
resources, an increase in salaries of bank employees due to rising prices for other banks, etc. 
2.
Losses: due to unforeseen circumstances, non-receipt of income due to poor study of 
the situation in current activities and excess of planned expenses. The risk of losses arises 
primarily as a result of irrational allocation of funds, incorrect assessment of market 
opportunities and risks. 

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