A study on banking risk management: Operational and security risks in the Indian context

Abstract

In the Indian financial sector, dealing with banking risk matters is now extremely important, as it supports financial stability, defends against fraud, and ensures security for operations. The research places importance on cybersecurity systems, sector-specific hazards, and meeting compliance standards to determine how risk mitigation helps. Data from scientific journals and regulatory resources was combined with other approaches in our study. Fraudulent transactions can cause the most harm, and according to the analysis, the number of such risks is often associated with greater financial damage. Bank managers need to work on cybersecurity and AI-driven fraud detection since these areas have the most promise for improvement. The study revealed that stress testing and adhering to Basel III were the most successful approaches for the industry. They are assigned the ranking of “Stars” in the matrix, indicating their strong success in improving their financial condition and being accepted widely. Even though a small number of businesses choose blockchain security, the index reveals that this method has the highest success per person in stopping fraud. The report outlines that to enhance risk management in banks, similar regulations should be enforced, employees should go through organized cybersecurity courses, and AI can be utilized for predicting threats. To improve predictions on banking security, future investigations should use big data analytics for studying long-term patterns of risk.