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Risk Management in the Banks: An Analysis

G.V. Abhinav Kumar, Research Scholars, PGDM-Banking, Insurance and Financial Services, Institute of Public Enterprise, Hyderabad, Telangana State, India - 500101. , C. Sri Ramya1 , G.V. Abhinav Kumar2

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Journal of Social Welfare and Management 10(2 (Special Issue)):p 79-85, May-August 2018. | DOI:

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Abstract

The goal of risk administration isn’t to preclude or anticipate risk taking, however to guarantee that the risks are intentionally taken with full learning, clear reason and seeing so it can be estimated and moderated. In the event that a bank can go for broke all the more deliberately; envision unfriendly changes and could support likewise; Risk Management turns into a wellspring of upper hand, as a bank can offer its items at a superior cost than its rivals. For planning viable Risk Management methodologies, we have to create different Risk Management Committees like Credit Policy Committee, Asset Liability Management Committee, and a proficient Management Information System. Other than this, a goal and dependable information base must be developed for which bank needs to dissect its own past execution information identifying with advance defaults, exchanging misfortunes, operational misfortunes, and so forth., and turn out with benchmarks in order to set themselves up for the future risk administration exercises. In light of these realities the present paper presents the idea of Risk Management, its segments and the related issues. It at that point evaluates the different Risk Management systems being taken after and the methodologies proposed and actualized by banks world over and which are additionally in accordance with the Basel Committee suggestions. The information utilized, has been gathered from auxiliary sources. The majority of the data was gathered from productions of different National and International Organizations. The data gathered has been grouped and investigated for research.

Keywords: Risk Management; Banking.


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