Risk Management in Banking Sector - 12709 Words

Summer Training Project Report ON Risk Management in Banking Sector Summer Training Project Report Submitted for Partial Fulfillment for the Award of the Degree of MASTER OF BUSINESS ADMINISTRATION (MBA) UNDER THE SUPERVISION OF Prof. S.P Jain SUBMITTED BY Varun Sharma 0871913907 GITARATTAN INTERNATIONAL BUSINESS SCHOOL (Affiliated to GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY) ROHINI, NEW DELHI – 110085 (2007-09) ACKNOWLEDGEMENT I express my heartiest gratitude to Mrs. ANITA KHANNA (CUSTOMER RELATIONSHIP OFFICER - PNB) for giving me an opportunity to prepare a report on the project assigned to me. I am also thankful to Prof. S.P Jain, faculty, Gitarattan International Business School, Rohini. Under their guidance I†¦show more content†¦The study aims at learning the techniques involved to manage the various types of risks, various methodologies undertaken. The application of the techniques involves us to gain an insight into the following aspects: †¢ An overview of the risks in general. †¢ An insight of the various credit, market and operational risks attached to the banking sector †¢ The methodology related to the management of operational risk followed at PNB. †¢ Tools applied in for measurement and management of various types of risks. †¢ Having an insight into the practical aspects of the working of various departments. SCOPE OF THE STUDY The report seeks to present a comprehensive picture of the various risks inherent in the bank. The risks can be broadly classified into three categories: †¢ Credit risk †¢ Market risk †¢ Operational risk Within each of these broad groups, an attempt has been made to cover as comprehensively as possible, the various sub-groups The computation of capital charge for market risk will also be taken practically as also the assigning the ratings for individual borrowers. PNB is also under the key process of testing and implementation of Reuters KONDOR software for its VaR calculations and other aspects of market risk. LIMITATION OF THE STUDY 1. The major limitation of this study shall be data availability as the data is proprietary and not readily shared forShow MoreRelatedOperational Risk Management in Banking Sector: an Overview2324 Words   |  10 PagesVolume : 3 | Issue : 1 | January 2013 | ISSN - 2249-555X Operational Risk Management in Banking Sector: An overview Keywords Rakesh Chutia Assistant, State Bank of India Margheita-786181 Dist.-Tinsukia Assam ABSTRACT Operational risk is inherent in all banking products, activities and processes and systems and the effective management of operational risk is of paramount importance for every bank’s board and senior management. With globalization and deregulation of financial markets, increasedRead MoreDisadvantage of Universal Bank1220 Words   |  5 Pagesinterest; private investors, however, would usually prefer investments in securities to realize higher interest earnings. †¢ Risk of concentration processes; but in spite of a decreasing number of banks, especially of private banks, neither a suppression strategy of big universal banks against smaller competitors nor a cartelization is to constate in the banking sector. †¢ Potentials of influence: In particular big banks - as a result of their broad offer of financial products - are to be expectedRead MoreThe Bank Of New Zealand1000 Words   |  4 Pageshousing sector due to the rise and the banks and lenders also felt secured to lend them. Over reliance on the high mortgage value made banks feel safe and the quality and standards of loans started getting compromised. When the prices started falling down the problem was raised in whole industry. The banks ANZ, BNZ, Westpac and ASB are considered four big banks of New Zealand. According to RBNZ (2005) these four banks were holding 65% of total asset being held by entire financial sector of the countryRead MoreHow Technology Has Changed Our New Set Of Skills And Practices1040 Words   |  5 Pagesbreaches and incidents. On this note of insecurity and unpredictability, banking industry is keen to redefine its approach to security thereby making an attempt to balance three critical factors i.e. cost, innovation and risk. On parallel grounds, the domain of internal security is undergoing drastic changes that mandates banking institutions to embrace new set of skills and practices. Fraud can be categorized as a business risk – it is like a sword of Damocles over a bank’s future. This must changeRead MoreThe Future Of The Bank Essay1561 Words   |  7 Pagesfrom the savers and providing loans to the defecator’s .Banking sector makes the financial infrastruct ure of a country. Today banking has become an important part of our modern economy. It is also a driving force of our economy. Generally we make our transaction through bank. In whole world banking sector has become the main point of the economy in our country there is no exception. Banks play an important role in the country. So modern banking is important. The main concern of this paper is to analyzeRead MoreWhat Are The Challenges Of Chinas Financial System921 Words   |  4 Pagesby the shadow banking, typically with higher interest on loans. In the meantime, the less regulated yet fast growing shadow banking sector also poses uncertainties of systematic risks to the overall financial system for various reasons: the shadow banking sector may lack necessary risk management skills with fewer resources to monitor the risks associated with off-balance-sheet wealth management products, the maturity mismatch between the liability and asset sides of shadow banking products couldRead MoreChallenges Faced By The World Today1042 Words   |  5 Pagesbreaches and incidents. On this note of insecurity and unpredictability, banking industry is keen to redefine its approach to security thereby making an attempt to balance three critical factors i.e. cost, innovation and risk. On parallel grounds, the domain of internal security is undergoing drastic changes that mandates banking institutions to embrace new set of skills and practices. Fraud can be categorized as a business risk – it is like a sword of Damocles over a bank’s future. This must changeRead MoreThe Growth And Development Of The Banking Sector1280 Words   |  6 PagesThe trend in the banking and financial institution undergo the transformation of changes within a short span of period. The applications of different advanced technology and the prolonged investigations and research has contributed to the increased growth and develop ment of the banking sector. The finance industries implement a distributed information center. The client’s data and information regarding the transactions get replicated in different terminals to enhance the easy transactions betweenRead MoreElectronic Banking in Nigeria: Problems and Prospectsks in Nigeria1330 Words   |  6 PagesManaging Challenges in Banking Industry By: Dr. Sudhindra Bhat MBA, MFM, ACS, M.Phil, PGDSamp;MM, PGDIRamp;PM, PhD** Management Faculty, Consultant and Corporate Trainer Acharya Institute of Management and Sciences 1st Cross, 1st stage, Peenya industrial Area, Bangalore-560 058 E-mail: bhatt1978@yahoo.com    Financial System is the most important institutional and functional vehicle for economic transformation of any country. Banking sector is reckoned as a hub and barometer of the financialRead MoreEvaluation Of Financial Position And Performance Of Uk Banking Sector1163 Words   |  5 PagesTopic: Evaluation of Financial Position and Performance of UK Banking Sector with Respect to Liquidity and Profitability Research Background: Several research studies have done not only about the importance of performance evaluation (financial and non financial) of banks but also for the impact of analysis to the economy and various stakeholder groups. Generally the financial performance of banks and other financial institutions has been measured using a combination of financial ratio analysis, measuring