Risk Management in Indian Banks: Analyzing Strategies and Practices in a Globalized Economy

Any financial institution must fundamentally understand risk and how to manage it. Risk management, which is the use of proactive strategy to plan, lead, coordinate, and control the vast array of hazards that are incorporated into the fabric of an organization's daily and long-term operation, is essential to the organization's overall success. Due to intense competition, shifting socioeconomic trends, market flexibility, a rise in cross-border activity, and greater foreign currency transactions, risk exposure in the banking system has recently expanded globally in a variety of ways. In most growing economies, including India, the financial sector, particularly the banking sector, is undergoing transition. The developments of novel goods and delivery methods, as well as increased global competition, have elevated risk management to the fore of today's financial scene. The secret to success will be having the ability to assess the risks and take the proper action. The goal of this article is to identify distinct risk types that go into risk analysis in Indian banks. It also looks at the various methods used by bank management to handle these risks in light of Basel committee guidelines. The study mostly uses secondary data from books, journals, and online publications.