The most important objective of Bank’s management is to increase the returns for its owners. This is normally possible at the cost of increased risk. To contain the risk at tolerable level, banks establish a comprehensive and reliable risk management system. Additionally, such system is integrated in all banking activities.

Establishing a comprehensive and reliable risk management system is one of the most difficult task for the bank management. Therefore, the bank management considers various dimensions of Risk Management in order to achieve this objective.

Please view the following video to know more:

How banks manage risk? ~ I

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