Topics: Risk management, Risk, Operational risk Pages: 18 (2722 words) Published: September 22, 2014

Submitted to the
Alliance University
Alliance School of Business


For the Ph.D Degree Application

Ph.D Student Applicant

March 2014

1. Introduction
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. Risk Analysis, in a broad sense, is any method — qualitative and/or quantitative — for assessing the impacts of risk on decisions. Myriad Risk Analysis methods are used that blend both qualitative and quantitative techniques. The goal of any of these methods is to help the decision-maker choose a course of action, given a better understanding of the possible outcomes that could occur. Risk Management is the application of proactive strategy to plan, lead, organize, and control the wide variety of risks that are woven into the fabric of an organization’s daily and long-term functioning. Like it or not, risk has a say in the achievement of our goals and in the overall success of an organization There are many method for investigation of risk management in this research we used statistical analysis. For data analysis we used rating method for calculating of risk and statistic method for testing hypotheses. For Reliability analysis of Scale we used ALPHA Reliability Coefficients1. Also we used t-test analysis for testing equality of means and Levene’s Test for testing of equality of Variance within banks and risk factors. Analysis of variance, or A NOVA, is used for testing differences within and between several group means of risk in selected banks and differences within and between means in risk factors. Purpose of the research

Risk Analysis and Risk Management has got much importance in the Indian Economy during this liberalization period. The foremost among the challenges faced by the banking sector today is the challenge of understanding and managing the risk. The very nature of the banking business is having the threat of risk imbibed in it. Banks' main role is intermediation between those having resources and those requiring resources. For management of risk at corporate level, various risks like credit risk, market risk or operational risk have to be converted into one composite measure. Therefore, it is necessary that measurement of operational risk should be in tandem with other measurements of credit and market risk so that the requisite composite estimate can be worked out. So, regarding to international banking rule (Basel Committee Accords) and RBI guidelines the investigation of risk analysis and risk management in Co-Op banks is being most important. Therefore, the overall purpose of the research is “to investigate risk analysis and risk management in selected Co-Op banks in Pune”. Objectives of the research

Objectives of this research are verifying the integrity of internal risk management systems. During the verification process, we will test independently in proportion to the risk. We will validate periodically; all key control functions within a bank, even those designated as low risk. Beside the general purpose of the research, the following specific objectives have been mentioned in the...
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