Risk Identification System in Indian Commercial Banks: An Empirical Study

There has been tremendous transition in the role of bank as a financial intermediary. Banks’ role in the new regime focuses not only as provider of finance but also as financial service provider. Size and functions of banks are now enormous, varied, and complex. The expanded role of banks has given rise to various risk exposures. Due to such exposure to various risk types, efficient risk management is required. Identifying the existence of current and potential risks is the first step towards risk management process. This paper is an attempt to identify the factors that contribute to risk identification in banks and to compare that risk identification system differ in public sector and private sector banks or not, the empirical study has been conducted and views of employees of various banks have been tested using statistical tools.