Resume Essay

1243 Words Mar 31st, 2012 5 Pages
TITLE

RISK MANAGEMENT IN BANKS

EXECUTIVE SUMMARY Risk management is the identification, assessement , and prioritization of risk (whether positive or negative) followed by co ordination and economical application of resources to minimize, monitor, and control the probability or impact or unfortunate or to maximize the realization of opportunities. Risk can come from uncertainty in financial markets, project failures, legal liabilities, credit risk, accident, natural causes and disasters as well as deliberate attack from adversary.
The financial crises exposed inherent weakness in the risk management system: soled infrastructure, disparate system and processes, fragmented decision making, inadequate forecasting and a
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Major banks have merged, many institution have become global and banks seems increasingly likely to pursue mergers and others alliances with insurance companies. Although institution have grown in size, competition has substantially increased. This is because over the same period regulators have relaxed their rules and have allowed banks tooffer new products and to enter new products and new business activities.
The Financial Service Act 1999 lead to further far-reaching change. The proposed reform is intended to allow bank holding companies to expand their range of financial services and to take advantages of new technologies such as web-based e-commerce. The legislation also put new brokerage firms and insurers on par with allowing them to enter into full range of financial activities and complete globally . The expansion of the activities of banking holding companies will incur new market, credit and operational risks. OBJECTIVE OF THE STUDY

The objective of research is to study the Risk management in Banks. The area of study in Risk management would include:

* To understand risk management in banking sector. * Study different types of risk involved in banking sector. * Detail study of major risk in bank( market, operational & credit risk) * To understand the RBI norms BASEL

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