THE ROLE OF FINANCIAL CONTROLLING IN THE MANAGEMENT SYSTEM OF BANKS AND SECURITIES MARKET PARTICIPANTS

Abstract

The stability and efficiency of financial institutions, particularly banks and professional securities market participants, are decisive factors for a country’s macroeconomic security and development. In the current environment, the activities of securities market participants take place in a context characterised by heightened global risks, rapid digital transformation of financial services, increasing complexity of regulatory requirements, and the influence of behavioural factors on market dynamics. This creates an urgent need to enhance internal management systems capable of ensuring strategic adaptability, proactive risk management, and operational efficiency. The aim of the article is the theoretical substantiation and development of the conceptual foundations for constructing a financial controlling system as an integrated element of managing banks and professional securities market participants. The research is directed at overcoming the fragmentation in perspectives on controlling functions by creating a model that systemically combines strategic planning, operational efficiency, and risk management within a unified information-analytical framework, adapted to modern conditions. The methodological basis of the research comprises general scientific methods of analysis, synthesis, generalisation, systemic-structural analysis, and comparison. To quantitatively substantiate the effectiveness of the integrated approach, the mathematical apparatus of portfolio theory was used, specifically the Value at Risk (VaR) calculation methodology taking into account asset correlations. The theoretical foundation was provided by contemporary scientific works of domestic and foreign authors addressing the problems of financial controlling, risk management in banks, digitalisation of financial markets, behavioural finance, and the functioning of the Ukrainian securities market. As a result of the research, an integrated financial controlling model has been developed, positioning it as a system-forming core that ensures the connection between an institution’s strategic goals, operational controlling, and the risk management and compliance system through a unified information-analytical platform. It has been quantitatively proven that the integrated assessment of an investment portfolio’s risk using controlling tools (Portfolio VaR) is 8.4% more accurate than the sum of individual risks, demonstrating the diversification effect and confirming the necessity of a comprehensive approach. A system of balanced key performance indicators (KPIs) has been proposed for evaluating the performance of the controlling system itself across four perspectives: financial, customer (market), internal processes, and learning. The trajectory of the evolution of controlling tools from traditional ones (budgeting, variance analysis) to digitally-integrated ones (continuous planning based on ML, prescriptive analytics, real-time monitoring) has been defined, ensuring a transition from reactive to proactive management. The practical implications of implementing the model have been outlined, including enhanced financial stability, optimisation of capital utilisation, and reduced time for managerial decision-making. Prospects for further research lie in deepening and specialising certain aspects of the proposed model. This includes, first and foremost, the development of algorithms for integrating ESG criteria and sustainable development factors into strategic and investment controlling methodologies. Modelling the influence of investor behavioural biases and social media on market trends to improve predictive controlling tools is highly relevant. A separate important direction is researching the model’s resilience under extreme external shocks characteristic of the Ukrainian market, using stress testing. Furthermore, the development of recommendations for optimising the architecture of the controlling information platform from the perspectives of cybersecurity, data processing speed, and compliance with international reporting standards is necessary, which is critical for integrating Ukrainian financial institutions into the European space. The development of these directions will contribute to forming a modern scientific approach to managing financial institutions under conditions of uncertainty.