AN ANALYSIS OF DIGITAL FINANCIAL RISK ASSESSMENT METHODS IN IOB BANK

The banking sector has undergone a significant transformation with the rapid adoption of digital financial technologies. Indian Overseas Bank (IOB), a leading public sector bank in India, has actively integrated digital solutions to improve operational efficiency, service delivery, and customer experience. However, this shift has also introduced multiple financial risks, including cybersecurity threats, inaccuracies in credit assessment, operational disruptions, and regulatory compliance challenges. This study presents an analysis of the digital financial risk assessment methods adopted by IOB, focusing on their effectiveness, implementation challenges, and alignment with regulatory requirements. Primary data was collected from 103 respondents, including bank employees, banking professionals, and digital banking users, through a structured questionnaire. Secondary data was obtained from RBI reports, IOB annual reports, and relevant academic literature. The study evaluates key digital risk assessment tools such as AI-based credit scoring models, cybersecurity frameworks, operational risk management systems, compliance monitoring mechanisms, and data-driven early warning systems. Statistical techniques including percentage analysis, Likert scale evaluation, and chi-square tests were applied. The findings indicate that although IOB has made considerable progress in adopting digital risk management practices, several gaps remain in areas such as real-time fraud detection, customer awareness, cybersecurity infrastructure, and integrated risk governance.