Executive Summary In this project I have done study on Risk Management of various Public & private Sector Banks.

I have studied how the Bank identify the various types of risk and how they manage to avoid it by applying various types of methods. In this research report I have selected the QUESTIONAIRE method for collecting information. For this purpose I have chosen the area of DELHI and NCR. The size of my sample is 10 which is divided in following segments. After analyzing the findings I have concluded that Banks are using all the techniques of operational risk management or measurement mentioned in the questionnaire. Stress testing, VaR, Gap analysis, FTP, maturity and position quantifies of risk being used widely by the banks. Banks are very optimistic about preparation of accounting books according to US GAAP standards by saying that it will bring sea change into disclosure mechanism by the banks and also it will provide a competitive edge to the bank who is preparing its books of account in connivance with US GAAP standards. Objectives: 1. 1. To study the various methodologies used by the banks in their operational risk management activity. 2. 2. To ascertain whether the concern for operational risk management is truly paramount in the eyes of banking peoples or it is mere compliance of rules and regulations. 3. 3. To ascertain the viability of the methodologies related to operational risk management. 4. To study the regulatory framework related to operational risk management. Limitations: v Operational risk management is basically a new concept in Indian banking industry. Due to several reasons banks are not been able to follow operational risk management guidelines as proposed by RBI. Those banks that have been following operational risk management concept are now in the process of updating their existing rules and regulation and those who havent been following operational risk management concept are in the process of its implementation. This was main limitation of this research. v Another limitation was small sample size. Only 10 banks are being considered for research purpose. As decisions, the necessary information could only be collected from the head office of the concerned banks. The head offices of mostly banks in India are located in New Delhi and Mumbai and some in south. Some questionnaires is filled by branches so there may be some unauthentic data will be available it is because of branch level officers could not provide all required data, so geographical location was the another hindrance. Conclusion:

After the survey conducted, one thing, which appeared very, clearly is that operational risk management function is really flourishing like in banks operating in India. This is in fact the need of the hour. This is already limitation of this research that sample size is very small. Only 10 banks are being considered for the purpose of conducting research. After the findings, it appeared that operational risk and credit risk are gaining more prominence in banks due to more rating assigned to them. v Banks are using all the techniques of operational risk management or measurement mentioned in the questionnaire. v Stress testing, VaR, Gap analysis, FTP, maturity and position quantifies of risk being used widely by the banks. v All banks which is selected for sample size all them having as separate statement of principles and objectives with respect to risk management. v Formal methodologies are being adopted for different kinds of risk like operational risk. v Banks are very optimistic about preparation of accounting books according to US GAAP standards by saying that it will bring sea change into disclosure mechanism by the banks and also it will provide a competitive edge to the bank who is preparing its books of account in connivance with US GAAP standards. v Banks are ready to improvement their existing risk management framework. v Banks are following the quid lines of New Basel Accord and it help the to deal with risk more effectively.