There is a general myth that Risk Management in banks is for specialists who are professionals in the field. The operating staff feels that it is not such an important thing to be aware of.
Risk Management in banks needs to be understood by the operating staff of banks that constitute the majority. Their knowledge needs to be conceptual. Whereas, specialists in risk management need to know advanced levels for application of the risk management processes at the bank level. These specialists constitute a minority who are working in Treasury, Risk Management Department, Foreign Exchange Dealers, Credit Department etc.,
Therefore the majority requires basic knowledge on risk management and the minority requires in-depth advanced knowledge on risk management practices.
It is a fact that the materials available in the public domain and books that are published on the subject are too technical for a layman to understand. The BIS document on Basel Accords and RBI circulars consist of huge volumes which requires time and in depth knowledge and understanding to comprehend. There is an absolute need of a reading material for the majority of the operating staff in banks and students of banking in general on risk management which is simple and comprehensible.
Keeping this majority of users in mind, an attempt has been made in this book to put in place the Risk Management concepts and the Basel Accords in simple and comprehensible manner. The topics are carefully selected and interlinked to help the reader understand the topics more clearly based on the Basel Norms of Bank of International Settlement (BIS) and Reserve Bank of India circulars.
The importance of capital in banks and the Basel norms which delve on capital adequacy ratio is discussed in a simple and lucid manner. Basel I, II and III have been discussed in detail on provision of capital for credit, market and operational risks. Credit rating/scoring of borrowers is very important for assessing their credit worthiness. A separate chapter has been devoted for this topic. Pricing of a product is also dealt with under the Basel II norms.
THE MARKET FOR THE BOOK
Students of Banking â€ Graduate and Post Graduate level. Students of certificate
course in Risk Management at IIBF, NISM etc.,CAIIB students of IIBF. Students
of Banking Academy where Risk Management is a major subject of study.
Operating staff of public and private sector banks in India.
Staff Training Centers of all Public Sector Banks for their libraries
Risk Management Departments of all Banks.
Prominent Colleges where banking is a subject in the curriculum of graduate/post graduate courses.