The investigation of risk analysis and risk management in selected branches of Cooperative banks in Pune

Abstract

In view of growing complexity of banks business and the dynamic operating environment, risk management has become very significant, especially in the financial sector. Risk at the apex level may be visualized as the probability of a banks financial health being impaired due to one or more contingent factors. While the parameters indicating the banks health may vary from net interest margin to market value of equity, the factor which can cause the important are also numerous. For instance, these could be default in repayment of loans by borrowers, change in value of assets or disruption of operation due to reason like technological failure. While the first two factors may be classified as credit risk and market risk, generally banks have all risks excluding the credit risk and market risk as operational risk.