A Comparative Study of Credit Risk Management in Public and Private Sector Banks in Haryana

Abstract

A risk management system is an effective tool for measuring the degree of risk typically faced by individuals in the financial industry. This approach enables the assessment of risk levels across various markets based on their potential impact on profit and loss. It facilitates the quantification of capital allocation to different markets and dealers, the establishment of significant risk limits, and the monitoring of performance. Risk systems also help quantify the capital required to serve as a buffer against potential future losses, which is crucial for both managers and regulators. Ultimately, the overall resilience of the financial market depends on the ability of individual enterprises to mitigate unforeseen losses through their capital buffers. newline