Assessing Risk in Banks

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Assessing Risks On Securities In The Banking Sector
RESEARCH METHOD

BFSL/10/FT
Bsc[Hons] Financial Services With Law

NAME STUDENT ID
• VEERASAMI JEVIN101772

• BOODHUN PREMA

• GORIAH ATHMA RAO

• ETIENNE ANNE-SOPHIE

• POINEN SELVI

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ABSTRACT

Assessing risk on security in the banking sector is a step in the risk management procedure. In this study you will have a glance of all types of risks that exist in the banking sector but you will also know each risks and their impact on securities. Risk can be deduced as mistakes occurring both by man and machines. We will also see how risks are faced and all procedures taken to find solution to tackle each risk in each sector of the bank. The study describes the different steps in the risk management process which methods are used in the different steps, and provides some examples for risk and safety management. Risk management is a rapidly developing discipline and there are many and varied views and descriptions of what risk management involves, how it should be conducted and what it is for. A well functioning banking sector is crucial to the functioning of our financial system, but yet the banking sector has been very troubled by different crises during the last 20 years. Even though more rigorous rules and requirements develop through increasingly stringent Basel agreements the global financial crisis of 2008 show that it still exist a problem of financial risk management. The paper begins with exploring the current risk management practice and process in terms of identifying and understanding the nature of risk, in the perspective of a bank.

KEYWORDS: Risk Management, BASEL 1, 2, 3.

Table of Contents
1.0 INTRODUCTION4

1.1Introduction of the study4

1.2 Background Information5

1.3 Problem Statement10

1.4 Significance of Research11

1.5 Objectives of the study11

1.6 Research Questions12

1.7 Hypotheses12

2.0 LITERATURE REVIEW14

3.0 RESEARCH METHODOLOGY17

3.1 Research design17

3.2 Population and Sample18

3.2.1 Target Population18

3.2.2 Sampling method18

3.2.3 Sample size18

3.3 Research Instrument19

3.4 Data Collection Method20

3.4.1 Reliability of data21

3.5 Validity and Variability21

3.5.1 Pilot Testing22

3.6 Data Analysis22

4.0 ANALYSIS AND FINDINGS23

4.1 Introduction23

4.2 Population and Response Rate23

4.3 Reliability Analysis23

4.4 Descriptive analysis23

5.0DISCUSSION24

6.0 CONCLUSION AND RECOMMENDATION24

7.0 ETHICAL CONSIDERATIONS25

8.0 LIMITATIONS OF THE STUDY26

9.0 REFERENCES27

10 APPENDICES29

1.0 INTRODUCTION

1 Introduction of the study

Risk is unavoidable and present in every human situation. It is present in daily lives, public and private sector organizations. Depending on the context there are many accepted definitions of risk in use. The common concept in all definitions is uncertainty of outcomes. Where they differ is in how they characterize outcomes. Some describe risk as having only adverse consequences, while others are neutral. One description of risk is the following: risk refers to the uncertainty that surrounds future events and outcomes. It is the expression of the likelihood and impact of an event with the potential to influence the achievement of an organization's objectives. The phrase "the expression of the likelihood and impact of an event" implies that, as a minimum, some form of quantitative or qualitative analysis is required for making decisions concerning major risks or threats to the achievement of an organization's objectives. For each risk, two calculations are required: its likelihood or probability; and the extent of the impact or consequences. Hence we can say assessing risk in the banking sector is a...
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