International Journal of Scientific Research and Engineering Development

Financial Risk Management is an important process used by financial institutions to identify, measure, monitor and control financial risks. Banks and organizations face various risks such as credit risk, market risk, liquidity risk and operational risk due to changing economic conditions and uncertain business environments.The main purpose of financial risk management is to reduce possible financial losses, improve decision-making and maintain financial stability. Effective risk management practices help banks protect their assets, ensure regulatory compliance and achieve sustainable growth. This study focuses on understanding financial risk management practices, risk identification methods and risk control techniques in the banking sector. It examines how proper risk management strategies contribute to profitability, stability and better performance of financial institutions. The study highlights the importance of risk assessment, monitoring systems and internal controls in managing financial challenges. Overall, financial risk management plays a crucial role in strengthening the financial position of organizations and supporting long-term success. Financial Risk Management is a vital area of financial management that deals with the identification, measurement, analysis, and control of financial risks faced by organizations. In the modern financial environment, banks and financial institutions operate under uncertain conditions due to economic changes, market fluctuations, technological developments, and increasing competition. These factors create different types of risks that can affect the financial performance and stability of institutions. Financial institutions mainly face risks such as credit risk, market risk, liquidity risk, interest rate risk, foreign exchange risk, and operational risk. Proper risk management helps organizations understand these risks and develop effective strategies to minimize their negative impact. It ensures better utilization of resources, protection of financial assets, and improvement in decision-making processes. The primary objective of financial risk management is to maintain financial stability, reduce potential losses, improve profitability, and support sustainable business growth. It enables banks to maintain adequate capital, manage cash flows efficiently, comply with regulatory requirements, and strengthen customer trust.

R Mounika, K.Yamini Bhargavi,"A Study on Financial Risk Management in ICICI Bank" International Journal of Scientific Research and Engineering Development, V9(3): Page(2796-2803) May-June 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.