Discovering the Impact of Risk Management on Strategic Positioning of the IDBI Bank in Chennai City-An Empirical Study

In emerging business world, managing risk has become a requisite, not an option. Sanusi, (2010) stated that, “in recent years excessive credits and financial asset growth went unchecked”. Risk Management is the process of risk identification, assessment, and prioritization trailed by synchronized and economical utilization of resources to curtail, observe, and regulate the probability and/or influence of unfavorable occasions. The main aim of this study is to recognize and accept the significance of risk management and how the factors of risk management practices have its impact on strategic positioning of the IDBI bank in Chennai city. The study followed descrptive and exploratory research design. The stratified random sampling technique was used to choose the samples. The primary data was collected from 100employees who are working in various branches of IDBI bank located in Chennai city using structured questionnaire. Structural

Equation Modeling technique was used to analyze the hypotheses and the results showed that there is a positive relationship between the four aspects of risk management (i.e. credit risk, market risk, operational risk, and liquidity risk) and strategic positioning of the banks in banking industry. These findings can expedite the better understanding of the factors in formulation and implementation of strategies to effectively manage the risk management and strategic position in the industry; hence the IDBI bank can satisfy all its stakeholders by its better performance and better service to the society.