The Crucial Role of Human Resources Accounting in Risk Management for Banks in India
Mrs.V.Padmavathy1, Dr.P.Uma Swarupa2
[1] Ph.D, Research Scholar, PG and Research Department of Commerce, Salem Sowdeswari College (Government aided), Salem – 10, Tami Nadu, India.(Affiliated to Periyar University, Salem. / Assistant Professor, Subbalakshmi Lakshmipathy College of Science, Madurai. padmavathysenthilkumar@gmail.com,
[2] Assistant Professor, Ph.D, Research Scholar, PG and Research Department of Commerce, Salem Sowdeswari College (Government aided), Salem – 10, Tami Nadu, India.(Affiliated to Periyar University, Salem. drumaswarupa@gmail.com,
Introduction
In the dynamic landscape of the banking industry in India, effective risk management is paramount to ensure stability, growth, and regulatory compliance. Amidst the myriad of risk factors that banks face, from credit and market risks to operational and regulatory challenges, the role of human resources (HR) accounting emerges as a linchpin in bolstering risk management frameworks. Human resources accounting in banks in India involves the systematic measurement and reporting of the value of human resources within the banking sector. This approach recognizes that employees are valuable assets and seeks to quantify their contribution to the organization's performance. Key elements include assessing recruitment costs, training expenses, employee productivity, turnover rates, and employee benefits. By quantifying the value of human capital, banks can make informed decisions regarding resource allocation, talent management, and strategic planning. In this article, we delve into the critical intersection of HR accounting and risk management within Indian banks, exploring how strategic human capital management can mitigate risks and fortify the financial sector. Evaluating how human resources accounting mitigates risk in banks involves assessing the effectiveness of HR strategies, policies, and practices in minimizing various risks faced by the organization.
