Risk Management in Banking

Risk Management in Banking

Aravind Kumar S, Rashika R R, Keerthana S

Sathyabama Institute of Science and Technology

ABSTRACT

Risk management is anessential ingredient of the banking industry that safeguards the financial institutions from constant instability and insecurity in an increasingly complex global arena. This includes an analysis of different kinds of risks that are associated with banks: credit risk, market risk, operational risk, and liquidity risk. Further, it describes various strategies towards risk mitigation. With evolving regulations and the coming of age of fintech, banks have to bring in robust risk management frameworks. This paper also explores the role of technology like AI, machine learning, and big data approaches in improving risk assessment and decision-making. It draws attention to the integration of risk management into corporate governance and its implications for long-term financial sustainability, highlighting the importance of a proactive approach in safeguarding against economic volatility and financial crises.

KEYWORDS:market risk, compliance, stress testing, mitigation strategies, internal control, recovery plans, enterprise risk management(ERM).