FINANCIAL FLEXIBILITY AND OPERATIONAL RISK MANAGEMENT IN BANKS
Author: PROF. (DR.) M.D. MOHITE, DR. D.Y. PATIL
Category: Human Resource Management
Abstract:
Economic reforms and financial sector reforms have provided the great deal of Financial Flexibility to the banks. An increasing use of modern information technology has provided the Financial Flexibility in terms
of volume of business, geographical coverage, products and service profiles, customer mix & emerging
new global banking business. All these have exposed the banks to new risk prone areas of Operational Risk.
In an emerging scenario of global banking the operational risk management is a new risk prone area with multi
complexities. Moreover, reward and risk are sensitively correlated. Therefore risk management must focus on risk
inventory risk synchronization, risk reduction and risk diversification. Along with this the risk base audit (RBA), risk
base supervision (RBS) and effective internal control system are must for banking operations for monitoring the
operational risk and ensuring financial flexibility with sustainable stability in banking business.
