Risk Management in Banking and Foreign Exchange

Risk Management in Banking and Foreign Exchange

Risk Management

Submitted by

Sudesh Mahadik F 16
Mahesh Mane F17
Rajaram Bhatulla F1


Dr. R. Gopal


1. Introduction to Risk
2. Risk in Foreign Exchange
3. IPR
4. Risk in Banking
5. Bibliography

The rapidly changing, increasingly complex global economy, advent of advanced electronic technologies, multiplicity of activities and our growing interdependence make larger and larger disasters inevitable. Progress has put more people, more companies at risk than ever before. Traffic multiplies on the road, in the air, and at the sea. The disasters cause death or hardship for many more people and properties than those directly involved. Defective goods can cause injury, mistakes do happen and accidents can kill or main employees and general public. It is the intelligent assumption of risk, not its avoidance that creates value in a company. Pandit Nehru once wrote “people avoid action often because they are afraid of the consequences for action means risk and danger.” Risk is universal, present in all things, all lives, inherent in being. The concept of a person free from risk is as theoretical as the concept of perfection.

This environment has caused a basic shift in the paradigm of risk management practices, and has placed greater emphasis on the successful identification, quantification, quantification, mitigation, control and financing of risk. Evolving concepts of risk are leading to complex management perspectives requiring and integrated view of the finances and operations of a corporation. Today’s risk manager must generate a comprehensive context of risks facing the organization, and become a catalyst for successful risk taking by the enterprises. Risk ensures that revenue-generating capacity of the asset is not affected and contributes to shareholder value in two ways, on expense side as well as revenue side. It can be made as the possibility of loss arising because of uncertainty of a particular transaction. A bank...

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