Soft Copy of Thesis Final

The Study of Financial Risk Management Practices By
Commercial Banks in Pakistan
Suhail Ahmed
MBA FIN. - REG.NO. 01630
Submission Date: 30/01/2011
Submitted to: Sir Adil Ameen
A Thesis in Partial Fulfillment of the Requirements

For the Degree of MBA
DEPARTMENT OF MANAGEMENT SCIENCES

IQRA UNIVERSITY, ISLAMABAD CAMPUS
2011
TABLE OF CONTENTS
Acknowledgement
Dedication
II
Certificate
III
Declaration form
IV
LIST OF TABLES
LIST OF FIGURES
VII
Abstract
VII
CHAPTERS
I
INTRODUCTION
12-15
Problem identification
15
Problem statement
16
Research Question
16
Objective of the research
16
Rationale of the study
17
Scope of the research
18
II
LITERATURE REVIEW
19-23
III
METHOD
24
Sample 24
Instruments and measures 24-25
IV
RESULTS AND DISCUSSION 26-52
CONCLUSION AND RECOMMENDATION 53-54

REFERENCES 55-56
APPENDIX 57
Acknowledgement
I thank Almighty Allah for giving me the courage and

the determination, as well as guidance in conducting
this research study, despite all difficulties.

I wish to extend my utmost gratitude to all the
research
participants
for
their
participation and cooperation.

I
also
extend
my
heartfelt
wonderful
gratitude
to
my
supervisors, sir Adil Ameen and sir Naeem Akhtar.

You were so wonderful to me. You made me believe
that I had so much strength and courage to persevere
even when I felt lost. You showed me light in a
tunnel
where
everything
was
dark.
You
were
very
tolerant and determined to see me through. You were

such
wonderful
motivators
even
when
the
coping
seemed tough for me. I aspire to emulate you.

Finally, I thank all those who assisted, encouraged,
and supported me during this research, be assured
that the Allah will bless you all for the
contribution you made.
Dedication
3
My Parents:
This thesis dedicated to my parents

Who Support me all the way since the
beginning
of
my
studies.
Thank
you
for your unconditional support with

my studies. I am honored to have you
as my parents. Thank you for giving
me
chance
to
prove
and
improve
myself through all my walks of life.

Please
do
not
ever
change.
love
you.
My Family:
Thank you for believing in me; for

Allowing me further mine studies.
Please
do
not
ever
doubt
dedication and love for you.
Certificate
my
It is certified that MBA thesis proposal titled

The Study of financial risk management practices
by commercial banks in Pakistan has been prepared
by Suhail Ahmed, Enrollment No. 01630 and has been
approved for submission.
Mr. Adil ameen

Thesis Supervisor
Declaration Form
5
Suhail
Ahmed
Reg.
01630
hereby
declare
that
the
thesis titled
The Study of financial risk management
practices
by
commercial
submitted
by
me
requirements
for
presents
research
Islamabad
Campus
in
the
banks
the
partial
degree
carried
and
in
aims
Pakistan
has
fulfillment
of
MBA
out
at
and
encouraging
of
this
Iqra
been
the
thesis
University
discussion
and
comments. The observation and viewpoints expressed are

the
sole
responsibility
necessarily
represent
of
the
positions
author.
of
It
Iqra
does
not
University
Islamabad Campus or its faculty. I also understand that

if evidence of plagiarism is found in my thesis at any
stage, even after the award of a degree, the work may be
cancelled and the degree revoked.
18/01/2011
Suhail Ahmed
LIST OF TABLES
TABLE NUMBER & HEADING
4.1
PAGE NO.
FREQUENCY DISTRIBUTION OF THE RESPONDENTS

W.R.T. GENDER 21
4.2

W.R.T. BANKS NAME 22
4.3

W.R.T. THE MOST IMPORTANT FOCUS
4.4
24
FREQUENCY DISTRIBUTION OF THE RESPONSES W.R.T.

"RISK MANAGEMENT SHOULD BE PRIMARY OR
SECONDARY FUNCTION"
4.5
25
FREQUENCY DISTRIBUTION OF THE RESPONSES

W.R.T. "METHOD AND TECHNIQUE DOES YOUR
BANK USE"
4.6
27

W.R.T. "DOES YOUR BANK BENEFIT FROM THE
MANAGEMENT"
4.7

W.R.T. "TECHNIQUES DO YOUR BANK USE"
4.8
29
31

W.R.T. "BANK BENEFIT FROM THE MANAGEMENT OF
OPERATIONAL RISK"
4.9

7
32
W.R.T. "BANK BENEFIT FROM THE MANAGEMENT OF

MARKET RISK 34
4.10 FREQUENCY DISTRIBUTION OF THE RESPONSES
W.R.T. "BANK FOLLOWS A STRICT RISK MANAGEMENT
PROCESS" 36
W.R.T. "RETAIL BANKING SHOULD INVOLVE
AGGRESSIVELY IN THE RISK MANAGEMENT 37
W.R.T. "SPECIALIZED STAFF AND NEW METHODS
ARE USE BY BANK" 38
W.R.T. "RISK MANAGEMENT PROCESS IN YOUR
BANK IS HANDLE BY SPECIFIED SECTORS"
40

W.R.T. "INCIDENT INVESTIGATION YOUR BANK
HAS FACED EFFECTIVELY"
41

W.R.T. "USE OF ADVANCE RISK MANAGEMENT YOUR
BANK HAS RAISED ITS REVENUE

8
42
W.R.T. "BANKING RISK AFFECT THE PROFITABILITY

OF THE BANK"
44
4.17 FREQUENCY DISTRIBUTION OF THE RESPONSES W.R.T.

"BANKING RISK ARE INDIRECT RELATIONSHIP
4.18
WITH THE VIABILITY OF BANK"
45
AVOVA descriptive table
46
LIST OF FIGURES
FIGURE NUMBER & NAME
PAGE NO.
9
4.1
PIE CHART
21
4.2
PIE CHART
23
4.3
PIE CHART
25
4.4
PIE CHART
26
4.5
PIE CHART
27
4.6
PIE CHART
29
4.7
PIE CHART
30
4.8
PIE CHART
32
4.9
PIE CHART
34
4.10 PIE CHART
35
4.11 PIE CHART
36
4.12 PIE CHART
38
4.13 PIE CHART
39
4.14 PIE CHART
40
4.15 PIE CHART
42
4.16 PIE CHART
43
4.17 PIE CHART
44
Abstract
10
The
rationale
contemporary
followed
of
risk
and
this
study
management
exercised
by
is
to
practices
the
investigate
that
banks,
are
the
being
particularly,
commercial banks in Pakistan. Primary data source is used

to provide the function. Results expose a no significant
difference in the application of risk management features
amid the pubic sector commercial banks and local private
banks. Also the financial reliability indicators be at
variance
in
value
for
each
type
of
commercial
bank.
Although there is a common sympathetic about risk and its

management amid staff of commercial banks, still there is
a
require
for
commercial
banks
to
work
out
training
courses customized to the wants of Banking Personnel in

Risk Management.
Field of Research: Financial Risk Management.
CHAPTER NO 1
INTRODUCTION
11
Background
Risk
is
defined
as
the
possibility
of
something
bad
happening at sometime in the future having a dangerous

situation
as
well
as
bad
results
(Oxford
dictionary,
2004).
The
type
of
risk
that
survives
inside
exacting
circumstances, disclosure to that risk can build a state

more serious. A enhanced technique to agreement with such
a
condition;
is
to
obtain
assured
advance
step
to
recognize any sort of risk that can create unpleasant

result.
The thought of risk changes since that of possibility and
improbability. Risk is thought to exist missing inside
condition wherever an individual is 100% sure regarding
the conclusion. This thought also brings the increase in
insurance among its basis. Insurance is the beginning
leading
which
community
demonstrates
an
excellent
agreement of motivation to acquire risk; it generates the

bottom
of
the
safety
where
destiny
has
been
throwing
expel by an energetic commitment among the prospect.

Risk management in banking contains an arrangement of
processes
and
models,
results
of
scientific
research,
that banks base on them to execute risk-based policies

and
practices.
traditional
environment.
Banks
are
financial
A
not
any
intermediation
wide
range
of
more
in
practice
low
ground-breaking
risk
and
evolutional financial products, accessible worldwide at

present time, have taken place and twisted banking into a
dynamic and active risk management process of possessions
and
liabilities
in
low
atmosphere.
12
synchronized,
high-risk
Risk Management is an assessment that is worn intended

for
recognize,
investigate
with
next
reacting
to
exacting risk. It is a development with the purpose of is

permanent in scenery and a supportive device in judgment
production procedure.
According to the Higher Education Funding Council for
England (HEFCE), Risk Management is not only second-hand
designed
in
possibility
favor
of
of
guarantee
terrible
the
decrease
accomplishments
except
of
it
the
in
addition cover up the raise in selections of happening

excellent
stuff.
representation
entitled
Prospect
speculation situation with the aim of an individual is

added
probable
to
obtain
lying
on
the
risk
than
to
experience a definite failure.

Risk management is one of the essential perform toward be
utilized specifically in banks, intended for receiving
promise about the consistency of the actions and measures
organism pursued. within todays active situation, every
banks exists rendering to a huge quantity of risks such
while credit risk, liquidity risk, foreign exchange risk,
market risk and interest rate risk, between additional
the risks which can possibly generate several resource of
hazard far a bank's endurance and accomplishment (AlTamimi and Al-Mazrooei, 2007). Owing to such coverage to
different risks, capable risk management is necessary.
Managing
risk
is
solitary
of
the
fundamental
responsibilities to be completed; formerly it has been

acknowledged and identified. The risk and go back are
instantly correlated to all additional, which resources
that
rising
solitary
will
consequently
enhance
the
additional and vice versa. And, effectual risk management

guides to supplementary impartial transaction among risk
and recompense, to understand an improved arrangement in
the future (Fatemi and Fooladi, 2006).
13
The rapid development in risk management interest and

capacity is driven by several factors. One observable
factor is the growth in financial derivative markets and
goods,
and
the
exhilarating
capabilities
for
risk
management that they offer.

Risk management is critical in Islamic banking business.
The
endurance
and
achievement
of
monetary
association
relies on the competence in which they preserve control

its risks, thus, risk management is one of the crucial
aspects in provide superior revisits to the investors
(Akkizidis and Khandelwal, 2008). In addition, it will
rely to a huge amount lying on how these establishments
will direct dissimilar risks occurring from their actions
(Khan and Ahmed, 2001). In adding, prudential values on
capital competence and risk management put out by Islamic
Financial
Services
Board
(IFSB)
illustrates
the
significance of risk management for IBs. To conclude, the

efficient
and
capable
risk
management
in
Islamic
financial institutions has implicit exacting significance

as
they
attempt
to
manage
through
the
confront
of
globalization (Sundararajan and Errico, 2002).

Money-making banks are within the risk industry. In the
method of provided that financial services, they think
different types of financial risks. Over the last decade
our perceptive of the position of profitable banks inside
the monetary division has enhanced significantly. Suffice
it
to
speak
that
market
participants
seek
out
the
services of these financial institutions because of their

capability
to
provide
market
awareness,
transaction
effectiveness and funding ability. In performing these

roles
they
normally
perform
as
principal
in
the
operation. As such, they utilize their own balance sheet

to make easy the operation and to take up the risks
related through it (Allen and Santomero, 1997).
14
The most important theme of this Study is to observe the

risk
management
process
of
analysis,
risk
3
controlling
mentioned
in
banking
management
assessing,
and
out
sector
i.e.
(1
rating,
communicating)
would
be
with
its
identification,
monitoring,
Whatever
tagged
complete
along
the
point
(followed)
by
complete analysis of the findings and conclusion.
Problem identification
Financial risk management in banking sector is not all
alone a single problem but it is a complete systematic
and
comprehensive
process
of
scientific
management.
Financial risk is inherent factor of banking business it

constitute the central part and the general idea of the
discipline of every banks strategic management.
Financial
risk
in
the
banking
business
can
not
be
eliminated but it can be reduced to certain extent by

prudent and the rational management because the risk and
return in banking business is directly associated to one
another
consequently,
enhancement
in
one
factor
would
lead enhancement in other factor. There is various type

of
risk
management
in
banking
business
but
the
prime
focus is always given to the credit risk, liquidity risk,

market risk, and operational risk consequently by the
most of researchers.
In Pakistan most of the banks are entirely focusing on
the consequences of credit risk and the depositors of
those customers solely vigilant about the liquidity risk
of the banks.
Problem statement
15
This study investigates the types of risks, techniques to

measure various types of risk in banking, and its measure
the level of risk management practices being conducted
banks sector by bank managers in Pakistan.
Research Question
The purpose of this research study is to examine the
financial risk management practices by commercial banks
in Pakistan.
Objectives of the Research

The
intension
of
this
research
is
to
scan
out
all
positive energies with the help of financial, by applying

various
approaches
and
mythologies
of
financial
risk
management in banking zone of Pakistan. The intentions of

this research are:
1. To analyze and recognize the risk in the banking
zone
of
Pakistan,
performance
such
which
as
affect
the
financial
profitability,
service
efficiency and market capitalization.

2. To
recognize
and
organize
them
in
order
that,
large quantum should be at the top.

3. To
determine
affects
its
that
the
data,
and
risk
management
financial
analysis
banking business.
Rationale of the study
16
primarily
in
the
Many of the banks have had an opportunity to enjoy the

joyous effects of the financial risk management in the
banking
sector.
And
they
could
save
themselves
from
liquidity risk (case of royal bank of Scotland in 2007-8

is market capitalization was reduced it an immense level
and again the capital is raised by injecting 80 million
dollar by US government).
Being of all that a little number of successfully running
banks due to the entire vigilant risk management have
saved those banks from drowning deck to its apex.
The core objective of risk management is that enhancing
the
financial
performance
and
productivity
is
its
practical implementation. Indeed, we can not discord the

canceled
aspects
of
the
failure
cases
of
banks
in
Pakistan due to operational mal practice, credit default

and liquidity factor.
The core objective of this research is to examine and
analysis
the
effect
of
performance
profitability,
market
capitalization
in
and
terms
of
operational
efficiency of financial risk management in banking sector

in Pakistan.
Risk management is the vital factor for all
the strategic planners, financial analyst and business

speculators
of
shareholders
would
effects
of
the
risk
banks.
must
be
That
aware
management
the
of
the
application
consequences.
Scope of Research
17
all
investors
and
positive
and
its
This
research
comprehensively
analysis
the
role
of
financial risk management in banking sector of Pakistan,

through the various comprehensive risk management process
and approaches. This research is based on the descriptive
of data from primary sources major commercial banks in
Pakistan.
It
would
guide
the
financial
manager
and
analyst
speculation and put it into the operation with respect of

alleviating
the
risk
and
enhancing
the
spectrum
of
investment return.
Risk management is very much familiar in banking business
whenever in a banking firm it is proactively implemented.
It
is
proven
financial
most
performance
profitable
of
bank.
and
effective
Risk
management
in
the
proves
less effective when it is based on feedback word control,

so feedback foreword control is effective tool in the
controlling function of risk management.
CHAPTER NO.2
18
LITERATURE REVIEW
A
study
in
failures.
which
They
they
evaluated
thought
that
the
risk
evaluating
of
banks
the
risk
associated to bank breakdowns is the supreme anxiety of

bank policies. They disagreed that in arrange to evaluate
the non-payment risk of a bank; it is essential bearing
in
mind
vibrant
its
financing
procedure.
assessments
The
research
as
an
study
endogenous
presented
continuous-time model, wherever banks wished the deposit

quantity in sort to exchange the profits of earning put
down qualities alongside the expenditure that would take
place
at
potential
resources
arrangement
modifications
(Koziol and Lawrenz, 2008).

A complete justification of risk management in Islamic
banking are completed by Akkizidis and Khandelwal (2008)
casing the portion of risk management concerns in Islamic
financial
agreements,
Basel
II
and
Islamic
Financial
Services Board (IFSB) for Islamic financial risk, and

exploratory
the
management
credit,
for
IBs.
market
They
and
operational
furthermore
risk
clarify
the
exclusive mix up or risk for each financial agreements in

IBs. Furthermore, Iqbal and Mirarkhor (2007) clarified
that the environment of risk management in IBs casing the
portion
of
the
requirements
for
risk
quantity,
administration and organizes in IBs and emphasize the

complete
risk
distinctive
management
risk
among
structure
the
used
for
orientations
every
of
IFSB
standards. Greuning and Iqbal (2007) talked about the

three
key
Islamic
alteration
bank
to
of
academic
facilitate
has
balance
sheet
suggestions
generally riskiness of the banking atmosphere.
19
of
on
an
the
Separately as of to, the contractual task of a mixture of

stakeholders
in
relative
to
risk
is
besides
been
decorated.
The UAE banks personnel has superior perceptive of risk
and
risk
management,
which
may
provide
suggestion
concerning the capacity of these banks to handle risks

professionally
in
the
future.
Furthermore,
sympathetic
risk and risk management had optimistic consequence on

risk management put into perform while it is irrelevant
(Al-Tamimi and Al-Mazrooei, 2007).
On risk management procedures, involve controllers to be
pleased that the banks and their banking assembly have in
position
would
complete
contain
the
risk
management
panel
and
development.
elder
This
management
to
recognize, evaluate, observe and organize or alleviate

all stuff risks and to evaluate their generally assets
capability
in
relative
to
their
risk
outline
(BCBS,
2006).
Furthermore, KPMG (2004) showed that a risk management
policy
which
business
reproduces
routine
and
an
impartial
conformity
move
management
toward
can
to
guide
associations to the accomplishment of sustainable worth

and better business assurance as in Figure 1. Therefore,
it
is
estimated
that
there
are
links
among
risk
management and business routines.

Figure
1:
accomplishing
improved
Business Performance.
20
Risk
Management
and
Source:
The
Compliance
Journey:
Balancing
Risk
and
Controls with Business Improvement, KPMG, 2004.

It is essential for personnel of banking establishments
to know the feature of risk in the banking functions and
the
risks
business
that
are
intrinsic
operations.
and
Enhanced
uncovered
thoughtful
in
their
of
risk
management is also compulsory mainly in the financial

intermediation
actions
somewhere
running
risk
is
individual its vital activities.

In adding, Gallati (2003) gave the period of investors
worth
purpose
humanizing
on
that
are
risk
estimated
management
to
be
difficulty;
gather
(1)
by
defense
alongside unexpected losses, (2) wages steadiness, and

(3) exploited earnings possible.
As recommended by Al-Tamimi (2002), in supervision risk,
profitable
banks
can
go
after
wide-ranging
risk
management technique which comprises 8 steps: disclosure

recognition;
management
rule;
data
meeting
objectives;
risk
and
risk
manufactured
management
assessment;
quantification;
goods
and
policy
manage
progress;
execution; and routine assessment.

A
study
carry
recognized
issues
are
out
by
that
the
not
the
Boston
Consulting
solitary
formative
technological
Group
(2001),
accomplishment
progress
except
the
capability to realize risk intentionally and as well the

capability
Secondly,
to
hold
within
sort
and
manage
toward
risk
recognize
directorially.
a
risk
bottom
management idea, the manner and outlook of the member of

staff
require
to
be
altered
whereby
they
have
to
be
carrying to recognize that managing risk is critical in

favor of achievement. This involves to nearby having to
be
concentrated
guidance,
obviously
distinct
constructions and tasks, also assurance to modify. In

21
adding, it was recognized that banks in North America and

Australia
give
attention
to
on
risk
management
principally to increase their spirited places. In the

meantime in Europe, Asia and mostly in South America,
risk management is measured major as of the perception of
narrow necessities.
According to Angelopoulos and Mourdoukoutas et al (2001)
there
are
two
dissimilar
ways
to
approach
the
risk
management; the philosophical and operational one. The

philosophical one deals with the Risk-return profile.
Meaning
the
association
that
payoff.
The
operational
is
survives
about
the
among
risk
and
recognition
and
categorization of banking risks, methods and measures to

gauge, observe, and organize them. It is clear that the
one approach is descendant of the other, and relates.
Once you recognize how much risk are you obtainable to
take, there is the corresponding method and procedure to
handle and neutralize it.
Scholtens and Van Wensveen, (2000) that talked about the
objectives of risk management, it can be quarreled to
facilitate
involved
compacts
risk
have
management;
two
major
whichever
to
objectives
evade
for
harmful
penalty (i.e. risk related to pessimistic outcome) or to

get
optimistic
consequences
(i.e.
risk
related
to
occasion). Risk management is more and more acknowledged

as being anxious with mutually optimistic and pessimistic
features of risk (IRM, AIRMIC and ALARM, 2002).
Within the perspective of banking, risk management carry
out
to
evade
negative
results
are
interconnected
to
conformity reasons. In this container, the banks perform

risk management in sort to evade monetary suffering and
to have adequate assets. On the added offer, if risk
management carries out are to get positive results where
risk
is
delighted
since
chance,
22
risk
management
is
practiced
not
simply
for
conformity
reasons,
but
to
gather the banks business objectives, which can be fall

out as to enhance the worth of investors by humanizing
their monetary routines.
The operational approach to risk management is referred
to the recognition of key risks, to the acquiring of
dependable, comprehensible, operational risk measures, to
the
choice
enhance
of
and
which
risks
to
what
means
and
by
decrease
to
the
and
which
to
institution
of
dealings to monitor the resulting risk location.

Recognizing
and
aggregating
risks
across
manifold
independent line up of business became a most important

matter
for
top
management,
since
in
the
surfacing
organizational structure they themselves were no longer

occupied in the day-to-day management of the business
elements
but
were
dependent
upon
official
coverage
instruments for operating information (Kimball, 1997).
23
CHAPTER NO 3
METHOD
Various techniques such as questionnaires and interviews
were used by prior studies for understanding the risk
management
based
practices.
survey
design
For
this
study,
is
selected
as
questionnaire
it
was
allow
comparatively huge population simply and efficiently.
Sample
Data
was
branches
collected
of
submitted
various
from
commercial
directly
commercial
the
sample
banks.
to
risk
bank
of
The
population
of
questionnaire
management
different
department
branches
of
59
was
of
MCB
bank, Alfalah bank, allied bank, HBL bank, national bank,

standard chartered bank, Barkley bank, askari bank, RBS,
kasb bank, js bank, sonari bank, my bank, nib bank, micro
finance bank, woman bank, Indus bank, summit bank, atlas
bank and Citibank Pakistan etc.
Instrument and Measures

This
was
survey-based
research
and
was
carry
out
through a questionnaire, which was distributed among 59

various branches of commercial banks through convenient
sampling method.
The questionnaire had 2 sections. Each section comprises
various questions. First section comprised of about the
banks,
1)
introduction
of
commercial
banks,
2)
to
organize of risk on the bases of its border quantum, 3)

functionality of risk, 4) feed forward and feed backward
approaches and techniques for risk analysis, 5) boons of
liquidity risk management, 6) techniques to identify the
24
risk,
7)
boons
of
boons
of
market
operational
risk
risk
management.
management
Second
and
section
8)
was
assess the degree of process, nature and specify sector

of the risk management in the branch of commercial bank
from which the question was got filled. Respondents were
asked
to
specify
their
agreement
stage
concerning
commercial banks risk management practices on a statement

ranging from 1(strongly agree) to 5(strongly disagree).
The Questionnaire was taken from (stavroula, 2009).
Reliability
Statistics
Cronbach's
N of
Alpha
Items
. 647
In
the
above
statements
is
table,
the
.647
this
alpha
16
reliability
shows
that
data
of
combine
which
collected through these combine statements is reliable.
CHAPTER NO 4
25
is
RESULTS AND DISCUSSION

Table 4.1
Frequency Distribution wrt Gender (N=59)
Freque Percen
ncy
t
Valid male
Valid
Percent
Cumulativ
e Percent
35
59.3
59.3
59.3
female
24
40.7
40.7
100.0
Total
59
100.0
100.0
Figure 4.1
Table 4.1 and its accompanying figure show frequency
distribution of respondents with respect to gender. The
table reveals that out of the total 59 respondents, 35 or
59.3% are male while 24 or 40.7% are female. Thus, the
table reveals that a clear majority of the respondents
were males.
Table 4.2
26
Frequency Distribution wrt Banks Name (N=59)

Frequen Percen
cy
t
Valid
Percent
Cumulativ
e Percent
MCB
5.1
5.1
5.1
STANDARD
CHARTERED
5.1
5.1
10.2
SILKBANK
5.1
5.1
15.3
MYBANK
5.1
5.1
20.3
BANKALHABIB
10.2
10.2
30.5
BANKALFALA
8.5
8.5
39.0
DEUTSCHEBANK
1.7
1.7
40.7
UBL
3.4
3.4
44.1
RBS
5.1
5.1
49.2
KASBBANK
3.4
3.4
52.5
NIBBANK
5.1
5.1
57.6
BARCKLAYBANK
1.7
1.7
59.3
CITIBANK
5.1
5.1
64.4
ASKARIBANK
1.7
1.7
66.1
HABIBMETROPOLITA
NBANK
1.7
1.7
67.8
MICROFINANCEBANK
3.4
3.4
71.2
OMANINTERNATIONA
LBANK
3.4
3.4
74.6
WOMANBANK
1.7
1.7
76.3
INDUSBANK
3.4
3.4
79.7
SUMMITBANK
1.7
1.7
81.4
ATLASBANK
3.4
3.4
84.7
BNAKOFPUNJAB
1.7
1.7
86.4
NBP
1.7
1.7
88.1
JSBANK
5.1
5.1
93.2
HBL
1.7
1.7
94.9
SONERIBANK
3.4
3.4
98.3
ABL
1.7
1.7
100.0
27
Figure 4.2
Table 4.2 and its accompanying figure show the frequency
distribution
name.
The
of
respondents
table
reveals
with
that
respect
out
of
to
the
total
bank
of
59
statements, 5.1% MCB, 5.1% STANDARD CHARTERED, 5.1% SILK

BANK,
5.1%
MY
BANK,
10.2%
AL
HABIB
BNAK,
8.5%
BANK
ALFALAH, 1.7% DEUTSCHE BANK, 3.4% UBL, 5.1% RBS, 3.4%

KASB BANK, 5.1% NIB BANK, 1.7% BARCKLAY BANK, 5.1% CITI
BANK, 1.7% ASKARI BANK, 1.7% HABIB METROPOLITAN BANK,
3.4% MICRO FINANCE BANK, 3.4% OMAN INTERNATIONAL BANK,
1.7% WOMAN BANK, 3.4% INDUS BANK, 1.7% SUMMIT BANK, 3.4%
ATLAS BANK, 1.7% BNAK OF PUNJAB,1.7% NBP, 1.5% JS BANK,
1.7% HBL, 3.4% SONERI BANK AND 1.7% ABL.
28
Table 4.3
Frequency Distribution the most Important Focus (N=59)
Cumulative
Frequency Percent Valid Percent
CREDIT RISK
Percent
12
20.3
20.3
20.3
LIQUIDITY RISK
15.3
15.3
35.6
MARKET RISK
15.3
15.3
50.8
20
33.9
33.9
84.7
13.6
13.6
98.3
1.7
1.7
100.0
59
100.0
100.0
OPERATIONAL RISK
FOREIGN
EXCHANGE RISK
INTEREST RATE
RISK
Total
Figure 4.3
distribution of respondents with respect to the statement
that the most important focus. The table reveals that out
of a total of 59 statements, 20.3% credit risk, 15.3%
liquidity
risk,
15.3%
market
29
risk,
33.9%
operational
risk, 13.6% foreign exchange risk and 1.7% interest rate

risk.
Table 4.4
Frequency Distribution Risk management Should be Primary or
Secondary Function (N=59)
Cumulative
PRIMARY
SECONDAR
Y
Total
Percent
49
83.1
83.1
83.1
10
16.9
16.9
100.0
59
100.0
100.0
Figure 4.4
that the Risk management should be primary or secondary.
The table reveals that 83.1% of the respondents primary
with
the
statement,
16.9%
statement.
30
is
secondary
with
this
Table 4.5
Frequency Distribution Method and Technique Does Your Bank Use (N=59)
Cumulative
Percent
MARKET SURVEY
3.4
3.4
3.4
PROSPECTING
3.4
3.4
6.8
12
20.3
20.3
27.1
19
32.2
32.2
59.3
PESTLE
8.5
8.5
67.8
BPEST
1.7
1.7
69.5
DECISION TAKING
10.2
10.2
79.7
5.1
5.1
84.7
11.9
11.9
96.6
3.4
3.4
100.0
59
100.0
100.0
R AND D
BUSINESS IMPACT
AND THREAT
ANALYSIS
STATISTICAL
INFERENCE
DEPENDENCY
MODELING
BUSINESS
CONTINUITY
Total
31
Figure 4.5
that the Method and technique does your bank use. The
table
reveals
that
3.4%
of
the
market
survey,
3.4%
prospecting, 20.3% R&D, 32.2% business impact and threat

analysis,
8.5%
taking,5.1%
PESTLE,
statistical
1.7
BPEST,
inference,
modeling and 3.4% business continuity.
Table 4.6
32
10.2%
11.9%
decision
dependency
Frequency Distribution Does your Bank Benefit from the Management (N=59)
Cumulative
Percent
CAN SATISFY ITS

OBLIGATIONS IN
12
20.3
20.3
20.3
10
16.9
16.9
37.3
15.3
15.3
52.5
20
33.9
33.9
86.4
13.6
13.6
100.0
59
100.0
100.0
CASE OF CRISIS
MEET ITS
REQUIREMENTS TO
CENTRAL BANK FOR
LIQUIDITY
BORROWS WITH
LOW INTEREST
RATE
IS ABLE TO UNWIND
AND HEDGE A
POSITION
ABLITIY TO
CONTRACT NEW
LOAN AND OTHERS
INVESTMENT FOR
PROFITABILITY
Total
33
Figure 4.6
that
does
your
bank
benefit
from
the
management.
The
table reveals that 20.3% can satisfy its obligations in

case of crisis, 16.9% meet its requirements to central
bank for liquidity, 15.3% borrows with low interest rate,
33.9% is able to unwind and hedge a position and 13.6%
ability to contract new loan and others investment for
profitability.
34
Table 4.7
Frequency distribution Techniques do your Bank use (N=59)
Cumulative
Percent
BUSINESS STUDIES
WHICH LOOK AT
EACH BUSINESS
49
83.1
83.1
83.1
10
16.9
16.9
100.0
59
100.0
100.0
PROCESS
AUDITING AND
INSPECTION
Total
Figure 4.7
that the Techniques do your bank use. The table reveals
that out of a total of 59 respondents, 83.1% business
studies which look at each business process and 16.9%
auditing and inspection.
35
Table 4.8
Frequency Distribution Bank Benefit from the Management of Operational
Risk (N=59)
Cumulative
Percent
LIMITED FRAUDS
DUE TO CUSTOMER
8.5
8.5
8.5
11
18.6
18.6
27.1
14
23.7
23.7
50.8
21
35.6
35.6
86.4
11.9
11.9
98.3
1.7
1.7
100.0
59
100.0
100.0
AND PERSONAL
ADEQUATE
FUNCTION OF
SYSTEMS AND IT
REDUCED
INTERNAL WRONGS
WHICH EFFECT THE
NET INCOME
NO OBSTACLES TO
OTHER BANK
ACTIVITY
NO LINKAGE OF
CONFIDENTIAL
INFORMATION
NO VIOLATION OF
DUTIES
Total
36
Figure 4.8
that the Bank benefits from the management of operational
risk.
The
limited
table
frauds
statement,18.5%
23.7%
reduced
reveals
due
to
8.5%
customer
adequate
internal
that
and
function
wrongs
of
the
respondents
personal
of
which
with
the
systems
and
it,
effect
the
net
income, 35.6% no obstacles to other bank activity, 11.6%

no
linkage
of
confidential
information
violation of duties to the statement.
37
and
1.7%
no
Table 4.9
Frequency distribution Bank benefit from the Management of Market Risk
(N=59)
Cumulative
Percent
LIMIT THE RISKS OF

OTHER
ASSOCIALTED RISKS
SUCH AS INTEREST
18
30.5
30.5
30.5
19
32.2
32.2
62.7
22
37.3
37.3
100.0
59
100.0
100.0
RATE, FOREIGN
EXCHANGE OR
LIQUIDATION RISK
BE IMMUNIZED
AGAINST ADVERSE
ECONOMICS FORCES
BE PROTECTED
FORM HIGH COST OF
BORROWING
FINANCIAL
PRODUCTS
Total
38
Figure 4.9
distribution of respondents with respect to
the
Bank
benefit from the management of market risk. The table

reveals that 30.5% of the respondents limit the risks of
other associated risks such as interest rate, foreign
exchange or liquidation risk, 32.2% be immunized against
adverse economics forces and 37.3% be protected form high
cost of borrowing financial product to the statement.
39
Table 4.10
Frequency Distribution Bank follow a Strict Risk Management Process
(N=59)
Cumulative
STRONGLY
Percent
18
30.5
30.5
30.5
DISAGREE
13
22.0
22.0
52.5
NEUTRAL
12
20.3
20.3
72.9
8.5
8.5
81.4
STRONGLY AGREE
11
18.6
18.6
100.0
Total
59
100.0
100.0
DISAGREE
AGREE
Figure 4.10

distribution
follow
of
strict
respondents
risk
with
management
respect
to
process.
the
The
Bank
table
reveals that 18.6 % of the respondents strongly agree,

8.5% agree, 30.5% strongly disagree, 22.0% disagree and
20.3% neutral.
40
Table 4.11
Frequency Distribution Retail Banking Should involve Aggressively in the
Risk Management (N=59)
Cumulative
STRONGLY
Percent
6.8
6.8
6.8
DISAGREE
19
32.2
32.2
39.0
NEUTRAL
16
27.1
27.1
66.1
AGREE
12
20.3
20.3
86.4
13.6
13.6
100.0
59
100.0
100.0
DISAGREE
STRONGLY AGREE
Total
Figure 4.11
distribution
of
the
respondents
with
respect
to
the
Retail banking should involve aggressively in the risk

management. The table reveals that out of a total of 59
respondents,
20.3%
agree
to
41
this
statement,
27.1%
neutral, 32.2% disagree with the statement, 6.8% strongly

disagree with the statement and 13.6% strongly agree with
the statement.
Table 4.12
Frequency Distribution Specialized Staff and new methods are use by Bank
(N=59)
Cumulative
STRONGLY
Percent
12
20.3
20.3
20.3
DISAGREE
15.3
15.3
35.6
NEUTRAL
10
16.9
16.9
52.5
AGREE
20
33.9
33.9
86.4
13.6
13.6
100.0
59
100.0
100.0
DISAGREE
STRONGLY AGREE
Total
Figure 4.12
42

that specialized staff and new methods are use by bank.
According to the table 15.3% of the respondents disagree
with
the
statement,
16.9%
neutral,
20.3%
strongly
disagree with the statement while 33.3% agree and only

13.6% strongly agree with the statement.
Table 4.13
Frequency Distribution Risk Management Process in your Bank is handle by
Specified Sectors (N=59)
Cumulative
STRONGLY
Percent
14
23.7
23.7
23.7
DISAGREE
15.3
15.3
39.0
NEUTRAL
13
22.0
22.0
61.0
AGREE
12
20.3
20.3
81.4
STRONGLY AGREE
11
18.6
18.6
100.0
Total
59
100.0
100.0
DISAGREE
43
Figure 4.13
that the Risk management process in your bank is handle by
specified sectors. The table reveals that 18.6% of the
respondents
agreed,
strongly
15.3%
agreed
disagreed,
with
23.7%
22.0% neutral.
Table 4.14
44
the
statement,
strongly
20.3%
disagreed
and
Frequency Distribution Incident Investigation your Bank has Faced

Effectively (N=59)
Cumulative
STRONGLY
Percent
12
20.3
20.3
20.3
DISAGREE
15.3
15.3
35.6
NEUTRAL
10
16.9
16.9
52.5
AGREE
20
33.9
33.9
86.4
13.6
13.6
100.0
59
100.0
100.0
DISAGREE
STRONGLY AGREE
Total
Figure 4.14
that
the Incident
investigation
your
bank
has
faced
effectively. The table reveals that out of a total of 59

respondents, 33.9% agree, 15.3% disagree, 13.6% strongly
agree,
20.3%
strongly
disagree
while
16.9%
neutral
whether the Incident investigation your bank has faced

effectively.
45
Table 4.15
Frequency Distribution Use of Advance Risk Management your Bank has
Raised its Revenues (N=59)
Cumulative
STRONGLY
Percent
14
23.7
23.7
23.7
DISAGREE
15.3
15.3
39.0
NEUTRAL
13
22.0
22.0
61.0
AGREE
12
20.3
20.3
81.4
STRONGLY AGREE
11
18.6
18.6
100.0
Total
59
100.0
100.0
DISAGREE
Figure 4.15
that the Use of advance risk management your bank has
raised its revenues. The table reveals that 23.7% of the
respondents
strongly
disagree,
20.3%
agree
with
the
statement, 15.3% disagree, 18.6% strongly agree and 22.0%

neutral.
46
Table 4.16
Frequency Distribution Banking Risk Affect the Profitability of the Bank
(N=59)
Cumulative
STRONGLY
Percent
10.2
10.2
10.2
DISAGREE
13.6
13.6
23.7
NEUTRAL
14
23.7
23.7
47.5
AGREE
23
39.0
39.0
86.4
13.6
13.6
100.0
59
100.0
100.0
DISAGREE
STRONGLY AGREE
Total
47
Figure 4.16
that the Banking risk affects the profitability of the
bank. The table reveals that 10.2% of the respondents
strongly disagree with the statement, 13.6% disagree, and
13.6% strongly agree 23.7% neutral while 39.0% agree with
the statement.
Table 4.17
48
Frequency Distribution Banking Risk are Indirect Relationship with the

Viability of Bank (N=59)
Cumulative
STRONGLY
Percent
12
20.3
20.3
20.3
DISAGREE
10
16.9
16.9
37.3
NEUTRAL
15.3
15.3
52.5
20
33.9
33.9
86.4
13.6
13.6
100.0
59
100.0
100.0
DISAGREE
AGREE
STRONGLY AGREE
Total
Figure 4.17
that the Banking risk are indirect relationship with the
viability of bank. The table reveals that out of a total
of 59 people, 13.6% strongly agreed with the statement,
16.9% disagreed with the statement while 33.9% agreed
49
with the statement, 20.3% strongly agreed, 15.3% neutral

with the statement.
Table 4.18
Descriptive Table
N
Bank follow a
strict risk
management
process
Retail banking
should involve
aggressively
in the risk
management
Specialized
staff and new
methods are
use by bank
Risk
management
process in
your bank is
handle by
specified
sectors
BRANCH
MANAGER
ASST.BRANCH
MANAGER
AVP
Total
BRANCH
MANAGER
ASST.BRANCH
MANAGER
AVP
Total
BRANCH
MANAGER
ASST.BRANCH
MANAGER
AVP
Total
BRANCH
MANAGER
ASST.BRANCH
MANAGER
AVP
Total
Incident
investigation
your bank has
faced
effectively
Mean
Std.
Deviatio
n
fstati
stics
pvalue
.737
.483
.355
.703
.301
.741
.355
.703
.355
.703
28
2.57
1.476
18
2.94
1.589
13
59
2.31
2.63
1.316
1.473
28
2.89
1.449
18
3.17
1.249
13
59
3.23
3.05
1.423
1.370
28
2.89
1.449
18
3.11
1.278
13
59
3.23
3.03
1.423
1.377
28
2.89
1.449
18
3.17
1.249
13
3.23
1.423
59
3.05
1.370
28
2.89
1.449
18
3.17
1.249
13
59
3.23
3.05
1.423
1.370
BRANCH
MANAGER
ASST.BRANCH
MANAGER
AVP
Total
50
Use of advance
risk
management
your bank has
raised its
revenues
Banking risk
affect the
profitability
of the bank
Banking risk
are in direct
relationship
with the
viability of
bank
BRANCH
MANAGER
ASST.BRANCH
MANAGER
AVP
Total
BRANCH
MANAGER
ASST.BRANCH
MANAGER
AVP
Total
BRANCH
MANAGER
ASST.BRANCH
MANAGER
AVP
Total
28
2.89
1.449
18
3.17
1.249
13
59
3.23
3.05
1.423
1.370
28
3.43
1.230
18
3.17
1.200
13
59
3.31
3.32
1.109
1.181
28
2.89
1.449
18
3.11
1.278
13
59
3.23
3.03
1.423
1.377
.355
.703
.264
.769
.301
.741
ANOVA analysis has been used to identify the different

preferences of employees with respect to Designation of
the Pakistani banking sector. As shown in Table 4.18,
there is no significant difference between these groups
that had been classified on the basis of designation.
P-value is greater than 0.05 in all these groups.
CHAPTER NO 5
CONCLUSION AND RECOMMENDATIONS
This
research
aspires
to
its
rational
analysis
and
evaluates the financial risk management for the sake of

51
enhances its basis of financial performance (likewise).

Profitability
market
capitalization
and
operational
efficiency it also intense to measure the significance

and magnitude of each factor affecting every level of
financial performance of banking sector. This research is
also examined on the basis of both male and female level
so that the factor of gender biasness should be avoided
at the most extent. Finding of this study mention that
there is positive relationship between the financial risk
management
revenue
to
and
the
financial
profitability),
performance
and
(rising
operational
of
viability
banking sector Pakistan has faced at tremendous change in

recent
year
and
continuously
by
still
the
it
mere
is
fact
on
going
the
new
towards
banking
the
firms
entrance has increased the competition among the banks.

While on the other prospect, vicious economic condition,
unstable political scenario and energy crisis affected
this banking industry. Which as result not only increase
the risk volume but also left this sector at unrest and
predictable
research
nightmare
would
not
condition.
only
The
fruitful
result
for
the
of
top
this
level
management of private banking sector, but also it would

be prolific for the semi government and government banks.
Finding
of
this
research
depict
the
picture
of
operational risk as burning issue for the risk management

in Pakistan. This places the apex position in its akin
risks following to the credit risk and liquidity risk
perceptively.
According to the table 4.3 this research study recommends
that the as the operational risk associated with the day
to day affairs so the personnel stop should be highly
experience,
trained
and
motivated.
So
that
the
human
errors, frauds and malpractice of unauthorized trading

52
would be mitigated at zero level. And equip the banking

personnel with basis internal tools likewise accounting
controls easily exceed and information system, so that
management system and trade process would be made more
efficient and to ebb the financial loss.
Risk
management
function
is
process.
very
So
it
comprehensive
is
needed
to
and
be
primary
generally
understood from apex level to first line managers, So

that
the
daily
operations
which
reveal
risky
nature
should be perform vigilantly. This research also shows, a

descriptive
face
about
various
techniques
and
methodologies to analysis and identify before and after,

occurrence
of
risk
oriented
incident
which
prior
the
business impact and threads analysis following R&D.

About all the methodologies risk management process is
going to be up dated day by day, Innovative technique and
highly specialized staff. During the overall period of
research personnel found that banking staff more then 90%
of banking staff is highly passive in innovative work
intensely. They are oriented on the rotten clerkel paper
oriented work, even the middle management used to seem
very poor risk identifier and do not show any proactive
response, even a little change only whole scenario. I
realized
that
banking
staff
needs
massive
training
justifiable workload, either to lessen the working hours

increase
the
shift
of
banking
staff.
So
that
its
efficiency and effectiveness would likely to be reached

at maximum level.
References
Allen, F. and Santomero, A. The Theory of Financial
Intermediation, Journal of Banking and Finance,
1997, forthcoming.
53
Al-Tamimi, H., Al-Mazrooei, F. (2007), Banks' Risk

A Comparison Study of UAE National and Foreign
Banks, the Journal of Risk Finance Vol. 8,
Issue: 4, pp. 394 409.
Al-Tamimi, H. 2002, Risk Management Practices: An
Empirical Analysis of the UAE Commercial Banks,
Finance India, Vol. XVI, No. 3, pp. 1045-1057
Akkizidis, I. and Khandelwal, S.K. 2008, Financial Risk
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Risk Management in a Globalizing Economy..,
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Management and Supervision of Interest Rate Risk,
Bank for International Settlements.
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on Banking Supervision, Bank for International
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Manager: Ten Principles for Establishing a
Comprehensive Risk Management System for Banks.
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A Survey of Practices, Managerial Finance
Volume: 32 Issue: 3, pp. 227-233.
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McGraw-Hill.
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Management, Irwin/McGraw-Hill, New York.
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APPENDIX
QUESTIONNAIRE
Dear participant,
55
My name is SUHAIL AHMED and I am a MBA student at IQRA UNIVERSITY

ISLAMABAD CAPMUPS. I am conducting a research about the financial risk
management for the Pakistani banking sector. The main objective of this research is to
identify whether Pakistani banks are applying risk management effectively which
tools they use. I would like you to help me accomplish this research by answering
this questionnaire.
Thank you for your time.
Please answer the following questions by ticking the appropriate box/boxes.
Designation:
Branch Manager
Gender:
male
Asst. Manager
AVP
female
1. Bank name: -------------------------------2. What are the banking risks that your bank consider are the most important to focus
on in order to protect the organization from adverse consequences?
o
o
o
o
o
o
Credit Risk
Liquidity Risk
Market Risk
Operational Risk
Foreign Exchange Risk
Interest Rate Risk
3. Does your bank believe that risk management should be a primary or a secondary
function of a banking organization?
o Primary
o Secondary
56
4. Which methods and techniques does your bank use in order to make risk analysis
before and after a risk occurred?
o
o
o
o
o
o
o
Market survey
Prospecting
Research and Development
Business impact and threat analysis
PESTLE (Political Economic Social Technical Legal Environmental)
BPEST (Business, Political, Economic, Social, Technological) analysis
Decision taking under conditions of risk and uncertainty and Real
Option Modeling
o
o
o
o
o
SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)

Statistical inference
Dependency modeling
Event tree analysis
Business continuity planning
5. How does your bank benefit from the management of liquidity risk?
o
o
o
o
o
Can satisfy its obligations in case of crisis

Meet its requirements to Central Bank for liquidity
Borrows with low interest rates
Is able to unwind and hedge a position
Ability to contract new loans and other investments for profitability
6. Which techniques does your bank use in order to identify its risks?
o Business studies which look at each business process and describe both the
o
o
o
o
o
o
o
internal processes and external factors which can influence those processes
Auditing and inspection
Risk assessment workshops
Scenario analysis
Industry benchmarking
Brainstorming
Incident investigation
Questionnaires
57
7. How does your bank benefit from the management of operational risk?
o
o
o
o
o
o
Limited frauds due to customers and personnel

Adequate function of systems and IT
Reduced internal wrongs which affect the net income
No obstacles to other bank activities
No linkage of confidential information
No violation of duties
8. How does your bank benefit from the management of market risk?
o Limit the risks of other associated risks such as interest rate, foreign exchange
or liquidation risks
o Be immunized against adverse economic forces
o Be protected from high cost of borrowing financial products
Section B:
Please check
the appropriate box concerning your agreement or disagreement for
the following statements:

(1= strongly Disagree
2= Disagree 3= neither agree or Disagree 4= Agree 5=
Strongly Agree)
1
9) Your bank follows a strict risk management process in order to be
immunized from adverse consequences.
58
10) Retail banking (front office) should involve aggressively in the

risk Management process.
11) Specialized staff and new methods are used by the bank to
enhance The Risk management process.
12) Risk management process in your bank is handled by a specified

sector.
13) Due to incident investigation (the previous experience of a risk)

your Bank has faced effectively the risks that after occurred.
14) Due to the use of advanced Risk Management, your bank has
raised its Revenues.
15) Banking risks affect the profitability of the bank.
16) Banking risks are in direct relationship with the viability of a

bank.
59

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The Study of Financial Risk Management Practices By

Commercial Banks in Pakistan

A Thesis in Partial Fulfillment of the Requirements

DEPARTMENT OF MANAGEMENT SCIENCES

Objective of the research

Rationale of the study

Scope of the research

Instruments and measures 24-25

RESULTS AND DISCUSSION 26-52

CONCLUSION AND RECOMMENDATION 53-54

I thank Almighty Allah for giving me the courage and

this research study, despite all difficulties.

participation and cooperation.

supervisors, sir Adil Ameen and sir Naeem Akhtar.

tolerant and determined to see me through. You were

seemed tough for me. I aspire to emulate you.

This thesis dedicated to my parents

for your unconditional support with

myself through all my walks of life.

Thank you for believing in me; for

dedication and love for you.

It is certified that MBA thesis proposal titled

Mr. Adil ameen

The Study of financial risk management

comments. The observation and viewpoints expressed are

Islamabad Campus or its faculty. I also understand that

TABLE NUMBER & HEADING

FREQUENCY DISTRIBUTION OF THE RESPONDENTS

FREQUENCY DISTRIBUTION OF THE RESPONDENTS

FREQUENCY DISTRIBUTION OF THE RESPONDENTS

FREQUENCY DISTRIBUTION OF THE RESPONSES W.R.T.

FREQUENCY DISTRIBUTION OF THE RESPONSES

FREQUENCY DISTRIBUTION OF THE RESPONSES

FREQUENCY DISTRIBUTION OF THE RESPONSES

FREQUENCY DISTRIBUTION OF THE RESPONSES

FREQUENCY DISTRIBUTION OF THE RESPONSES

W.R.T. "BANK BENEFIT FROM THE MANAGEMENT OF

4.14 FREQUENCY DISTRIBUTION OF THE RESPONSES

4.15 FREQUENCY DISTRIBUTION OF THE RESPONSES

4.16 FREQUENCY DISTRIBUTION OF THE RESPONSES

W.R.T. "BANKING RISK AFFECT THE PROFITABILITY

4.17 FREQUENCY DISTRIBUTION OF THE RESPONSES W.R.T.

WITH THE VIABILITY OF BANK"

AVOVA descriptive table

4.10 PIE CHART

4.11 PIE CHART

4.12 PIE CHART

4.13 PIE CHART

4.14 PIE CHART

4.15 PIE CHART

4.16 PIE CHART

4.17 PIE CHART

commercial banks in Pakistan. Primary data source is used

Although there is a common sympathetic about risk and its

courses customized to the wants of Banking Personnel in

happening at sometime in the future having a dangerous

circumstances, disclosure to that risk can build a state

recognize any sort of risk that can create unpleasant

agreement of motivation to acquire risk; it generates the

expel by an energetic commitment among the prospect.

that banks base on them to execute risk-based policies

evolutional financial products, accessible worldwide at

Risk Management is an assessment that is worn intended

exacting risk. It is a development with the purpose of is