The Impact of Portfolio Diversification on Risk Management Practices

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Luigi Pio Leonardo Cavaliere, Dr Sarika Keswani, Dr Satish Kumar, Shaju Mathew, Sanjib Das, Mohammed Faez Hasan, Dr S. Suman Rajest, R. Regin,


 Commercial banks that manage a substantial share of the financial industry's total assets depend mostly on credit. Banks may increase their revenues via this function, one of the main tasks of commercial banks. It should be recalled that banks will differ in various ways in terms of their aims, services, and strategies. In reality, in their day-to-day operations, banks confront several risks. Bank Performance is highly affected by "Credit Risk" since it is the possibility that the total value of assets may change in value because the counterparty has failed to meet its commitments under the contracted liability. A bank's primary purpose is to accept deposits and provide credit facilities which thus become necessarily subject to credit risk. So, Credit risks constitute the most significant risk that banks are subjected to, and their success depends to a degree greater than other risks from accurate measurement and successful risk management. The study carried out a quantitative technique during the survey distribution to a certain number of participants, and the findings were seen concerning the regression. Pearson Correlations analyzes, and the findings indicated that market risk, liquidity risk, loan risk and solvency risks are directly linked. However, throughout 2017 and 2018, the balance sheet was employed to concentrate on the net income effect of ratios. The findings have shown that the greater the risk management ratios, the higher the net income.

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