TYPES OF RISKS AND RISK MANAGEMENT IN THE CONTEMPORARY BANKING OPERATIONS

Risk Management is a discipline at the core of every financial institution and encompasses all the activities that affect its risk profile. Commercial banks cope with many risks, the most important of which are credit, market, operational and liquidity risks. As modern banking technologies develop, new risks occur. Statistical risk management methods, that combined with other management methods give good results, are becoming more popular and widely used. In order to adapt risk management systems most commercial banks will have to make changes in their risk management odels. The present study showed how various methods could be adapted to improve and adapt risk management model. Calculation of risk would be an essential requirement in the banks as they would be in the process of calculating not only the Credit Risk but also the Market The present paper highlights the various risks faced by banks. The paper presents various methods and models for managing various risks seeing the present scenario and suggests suggestions to manage risk. The paper highlights the various challenges and strategies for managing risk in banks.