Introduction

Risk management is relatively new and emerging practice as far as Indian banks are
concerned and has been proved that it is a mirror of efficient corporate governance of a
financial institution. Globalisation and significant competition between foreign and domestic
banks, survival and optimizing returns are very crucial for banks and financial institutions.
However, selecting the efficient customer and providing innovative and value added financial
products and services are another paramount factors. In a volatile and dynamic market place
for achieving sustainable business growth and shareholder’s value, it is essential to develop a
link between risks and rewards of all products and services of the bank. Hence, the banks
should have efficient risk management framework to mitigate all internal and external risks.

OBJECTIVES OF THE STUDY:

The project work is designed to fulfil the following objectives:

1. To study the effect of both risk and uncertainties this forms an integral part of banking
system due to globalization and global integration of the financial sector.
2. To Study the practice of risk management detail in Indian banking sector.
3. To make an item wise study of the components of risk management including various
technique of control mechanism.
4. To interpret and analysis the various roles of different tools and technique to managed
credit risk market risk as well as operational risk.
5. To make proper evaluation an identification being the different role of Basel’s new
capital accord and role of capital adequacy on the ground of risk aggregation and
capital allocation and RBS in managing the risk in Indian banking system.
6. Suggestion- management of the risk should be carried out very pro-actively quality of
credit will improved substantially by executive and matching the various principle of
our bank activities at par with international banking standard.

RESEARCH METHODOLOGY:

The information for the study has been obtained from two sources:

 Primary data
 Secondary data

Primary data:The primary data will be collected from the discussion with the concerned
officer and the staff of SBI. We collect the data from the classes which they held in
between the interact session.
 Secondary data The secondary data is obtained from the different source of website
business magazine and journals.
However in this period of training session most of the information is received from
the secondary source compare from primary source.