The Study of Risk Management in Public and Private Sector Banks

The risk is normally gauged from the probability of an adverse event happening and the expected magnitude of loss in case such an event occurs. The preparedness and the measures to mitigate risk are determined by the combined impact of the probability and magnitude of loss Public and Private Sector Banks.. If there is a high probability of small losses (stock prices, commodity prices) or small probability of large losses (earthquakes, tsunami, etc.), the magnitude of risk may be same but the strategies of risk management may differ. In business enterprises, the management of risk is mainly confined to situations of high probability of small losses Public and Private Sector Banks.. The management of the other kind of risk of small probability of large losses are more strategic in nature such as capital budgeting decisions Public and Private Sector Banks.. We now turn our focus on the management of the risks that emanate from conduct of normal operations of the business. Key words:- Preparedness, Probability, Magnitude, Risks