ANOVERVIEWONRISKMANAGEMENTPRACTICESINBANKINGSECTOR

Abstract

The Banking sector has a pivotal role in the development of an economy. It has a dynamic role to play in converting the idle capital resources for their optimum utilisation so as to attain maximum productivity. In fact, the foundation of a sound economy depends on how sound the Banking sector is and vice versa. In India, the banking sector is considerably strong at present but at the same time, banking is considered to be a very risky business. Financial institutions must take risk, but they must do so consciously. Risk Management is the importance to business strategy in order to plan, direct, organize, and control the wide variety of risks in the organizations along with the daily and long-term functioning. Risk Management accounts to the circumstances of risk management techniques in the business. To review and estimate financial risk management on-site trips to financial service firms were carried out since the past years. Like it or not, risk has circumstances in the attainment of goals and in the general success of a business. This Present paper makes an attempt to identify and analyse the risks faced by the banking industry and the process of risk management and also examine the different techniques adopted by banking industry to manage risk. To study the present paper objectives data has been collected from secondary sources i.e., from Books, journals and online publications. The information collected covers the performance of financial risk management. As a final point it can be concluded that the banks should take risk more consciously, willfully, predicts adverse changes and prevaricates accordingly, it becomes a source of competitive advantage, and efficient management of the banking industry.