RISK AND RISK MANAGEMENT TECHNIQUES OF BANKS: A DETAIL STUDY OF BASEL ACCORD

Abstract

Risk measurement and management has become a critical area for each organization in this highly competitive world. Banks and other financial institutes are the most sensitive to various kinds of risk and these institutions are highly involved in financial transaction on daily basis at comparatively much higher volume. In this research study, the researcher has tried to analyze various kinds of risks associated with the banks and their measurement and management techniques. In order to understand conceptual framework and the extent of risk impact on various areas of bank such as market risk, credit risk and operational risk; the Basel II Accord and RBI norms and guidelines are taken as the base. In this research study, all techniques and methods for risk measurement and management are based on as per the guidelines and norms of RBI and the Basel II Accord which is an international committee highly specifically for the risk management in banking systems and operations. The entire research study has divided into 5 chapters and each chapter has sections and sub-sections. The data analysis has done on both primary and secondary data which has been taken from various sources. The final chapter is highly focused to recommendation and conclusion of the complete research study. The case company for this research study is an Indian Public Sector Bank “The Bank of Maharashtra”. The primary data and information has been collected from the internal employees of the case company.