Risk Management Strategies and Practises for Banking Industry in India: A Cross-Sectional Study

Abstract

Risk management plays a crucial role in the banking industry, as it helps institutions
effectively identify, assess, and mitigate various risks that can impact their stability and
financial health. The study provides an overview of the most important RM strategies and
practices adopted by banks in India to navigate the dynamic and challenging financial
landscape. The findings of this study, if implemented, could guide banks in India in
enhancing their RM frameworks. By understanding the key risks faced by the industry and
the effective strategies employed by successful banks, institutions can strengthen their risk
identification, measurement, and mitigation processes. This can ultimately contribute to
improved stability, profitability, and resilience of banks in the face of uncertainties.
Regulators and policymakers can utilize the insights from this study to refine and enhance the
regulatory frameworks governing RM in the sector of finance. Research in this field
highlights the importance of maintaining an updated and comprehensive regulatory
environment that aligns with international standards while considering the unique
characteristics and challenges of the Indian banking industry. Policymakers can draw upon
the best practices identified in this study to implement targeted reforms that promote stability
within financing and protect the interest of people who invest and different stakeholders.