| Banking is the lifetime of an economy. They are the catalytic agent and in the driver's seat of the financial system banking is a risky business, due to liberalization policies in India. “Risk management is not a destination, but a journey”. It is not a onetime exercise but a life time exercise, which needs to be undertaken repeatedly. Risk management is the application of practices stability to plan, lead, organize and control the wide variety of risks that are rushed into the fabric of an organizations daily and long term functioning. Like it or not, risk has a say in the achievement of our goals and in overall success of an organization. Present paper is an make to attempt to identify the risks faced by the banking industry and the process of risk management. The paper also examines the different techniques adopted by the banking sector for risk management. The feature of banking will undoubtedly rest on risk management dynamics. Only those banks that have effective management system will survive in the market and the long run success in banking industry |