Challenges in Risk Management in Banks-Role of Management Accountants

Abstract

Post-liberalisation and reform period since 1990s, the Indian banking industry has been witnessing major changes posing unprecedented challenges for sustained growth and profitability. Globalization and resultant influx of the external effects of changes in the global macroeconomic factors made the task tougher both for the players as well as the policy makers. Risk management is a continuously evolving mix of science and art. Rising global competition, increasing deregulation, introduction of innovative products and delivery channels have pushed risk management to the forefront of today's financial landscape. Ability to gauge the risks and take appropriate position on time will be the key to success not only for retaining but also for creating and enhancing value for stakeholders with sustainable competitive advantage for a bank.