RISK MANAGEMENT IN

BANKING SECTOR

Under the guidance

of
Dr. Supriya

What Is Risk
Management ?

Risk management is the process of identification, analysis and

acceptance or mitigation of uncertainty in investment decisions.
Essentially, risk management occurs any time an investor orfund
manageranalyzes and attempts to quantify the potential for
losses in an investment and then takes the appropriate action (or
inaction) given hisinvestment objectivesandrisk tolerance.

OBJECTIVES:1. COVERING DIFFERENT ASPECTS OF RISK

ASSESSMENT.
2. IDENTIFYING KEYS FOR EFFCTIVE RISK
MANAGEMENT.
3. TO UNDERSTAND THE CHALLENGES AND
IMPACT OF RISK MANAGENT.

IMPORTANCE OF RISK
MANAGEMENT

Till date banking sectors have been working in

environment and were not much exposed to the risks.

regulated

But due to increase of severe competition banks are facing various

risks such as financial risks and non-financial risks.
The process of risk management is complex, so the banks are trying
to use the simplest and sophisticated models for analysing and
evaluating the risks.
In order to compete effectively, large-scale banking organizations
should develop internal risk management models.
Bank staff should be trained in risk modelling and analytical tools,
time to time by the banks.

METHODOLOGY
TO GET THE CONCLUSION FROM THE UNDERTAKEN PROJECT
ONE SHOULD MUST GO THROUGH A PROPER METHODOLOGY.
HERE IN THIS PROJECT METHODOLOGY IS BASED ON TWO
SOURCES, PRIMARY AND SECONDARY SOURCE.
PRIMARY SOURCE:
Under Primary source we have data in the form of
questionnaire which we got filled from the bank and various
data from the bank.

SECONDARY SOURCE:

Under Secondary source we have data collected from

outside the bank
such as internet, stock exchange and
Library.

Thank you