Risk Management Practices among Pakistani Banks Samba Bank Limited
IM Sciences Page 3
Risk is basically the uncertainty factor, that in the sense of investment and finance Risk meansthat its is the deviation between the expected and actual return. The probability of loss that theinvestor has to face while investing his finance in a project or business.In modern era where every economy is supported by the pillars of financial institutions, the risk has become a very prominent factor for the sake of strong and healthy economy. Although onone side of picture the Risk is consider something harmful but its not completely true, it actuallytoo much risk that can be harmful for a business or investor because the other thing that isattached to the other end of the risk is Return. This moves in the same direction as risk. As youcannot earn retu
rn if you don’t take the risk while investing. This phenomenon makes the risk a
very important factor as well.
Risk Management Responsibilities:
The Risk management framework means to identify what sort of risk can be arise in yourinvestment and to create a proper map which from the financial institution point of view containsvarious policies and procedures in order to cope Risk.As we are discussing about the Risk Management of Samba Bank Limited so the Risk management of Samba Bank seems very efficient as per its annual report says.According the annual reports samba bank has an independent Risk Management Organizationalunit, whose task is to manage Risk on various levels. This unit is independent and has authorityto directly report to the chief executive officer & president of Bank. As a bank samba bank alsohas to deal various types of Risk. The final responsibility Risk Management function is given tothe Board of Directors in the Samba bank. As we know the Risk Management is very serious