MANAGEMENT RESEARCH PROJECT

Project Proposal
Name: Bhavesh Kumar Enrollment No: 09BS0000550 E-Mail: bhavesh1431kmc@gmail.com

PROJECT PROPOSED:
A study on Enterprise Risk Management with special reference to Indian Banking Industry.

PROJECT SYNOPSIS:
Enterprise risk management in business includes the methods and processes used by
organizations to manage risk and seize opportunities.
Indian banks operate in more volatile financial markets, and they are undergoing significant
structural changes with respect to deregulation, privatization, and consolidation. Moreover,
Indian banks face complex organizational and technical challenges in meeting new regulatory
requirements from their central banks and the Basel II framework.
Some of the key risk associated with banks in which ERM initiatives is needed are as follows:-
 Economic and financial uncertainties.
 Banking reform and structural changes.
 Significant gaps in risk management capabilities.
 New regulatory requirements.
 Business and competitive mandates.
 People and skills.
 Change management.
 Data and modeling tools.
 Reporting and disclosure.
 Strategy and execution.

Three key reasons why Indian bank should adopt ERM without delay are as follows:-
 Banks face complex risks that are highly interdependent, and an ERM framework enables
a bank to manage all major risks and their interdependencies.
 An ERM framework provides the overall architecture for a bank’s risk management
programme.
 Empirical research and industry surveys have indicated that there are clear business
benefits for adopting an ERM programme.
OBJECTIVE OF THE PROJECT: In this project main motive is to find out the
various risk associated with banks and how it can be minimize with help of ERM. Some of the
objective is given below:-

 Establishing context.
 Indentify risks.
 Analyzing and quantifying risks.
 Integrating risks.
 Assessing/prioritizing risks.
 Treating and exploiting risks.
 Monitoring & reviewing.
 Developing risk Measurement models and databases.
 Providing risk education for the board of directors, as well as risk training for a wider
group of employees.

METHODOLOGY:

 Project includes performance analysis of banks and financial institutions: Risk

management perspective.
 Data will be collected from live cases of different banks on risk management.
 Project will also be based on secondary data analysis which includes Study of various
magazines, journals and internet search.

SCHEDULE:

 August 9’10 – Submission of Project Proposal

 December 10’10 – Submission of Interim Report
 March11’11 – Submission of Final Project Report.
LIMITATION OF THE STUDY:
 The study is mainly based on secondary data. So, tools & techniques, policies and
procedures actually followed by a specific Bank may not be procured as these may be
confidential in nature.
 This project suffers from the limitation of time constraint.

REFERENCE:

 “Enterprise Risk Management – From Incentives to Controls,” James Lam, Wiley

Finance (2003)
 Risk Management in Indian Banks Author: K M Bhattacharya
 Bank Annual Reports.
 Yahoo Finance, Bloomberg, July 1997 to Aug 2006.

Faculty Guide Name: Prof. Sumitro Saha.

(Signature Of Student)