ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD

DEPARTMENT OF BUSINESS ADMINISTRATION ORIENT GROUP PAKISTAN

Course Title: Banking Law & Practice (5548)

ASSIGNMENT NO: 2 Topic: Risk Management in Corporate Banks

Submitted To:
Mr. SAJID ALI

Submitted BY:
SADAF JAVED
Roll NO: AH522546

Spring Semester 2012 MBA

ACKNOWLEDGMENTS
First of all, I would like to say thanks to Almighty GOD, for giving me the strength and health to do this project work. The three things which go on to make a successful endeavor are dedication, hard work and correct guidance. Able and timely guidance not only helps in making an effort fruitful, but also transforms the whole process of learning into an enjoyable and memorable experience. This project proved as an excellent opportunity for me to apply the concepts learnt in the course of my program at the institute. I am also thankful to Allama Iqbal Open University Islamabad for giving me this opportunity which helped me in gaining knowledge about distribution strategies in organizations. I am deeply indebted towards Mr. Sajid Ali for guiding me in preparing this project. I am also thankful to all of the managers and the subordinates of MCB bank who guide me throughout the project.

Finally, I would like to thank all those who were directly or indirectly related to my project.

ABSTRACT
"A chance or possibility of danger, loss, injury, or other adverse consequences; or a person or thing causing a risk regardless in relation to risk." In every strata and sphere of life there is risk, and so is the case with various industries among which one is construction industry. In this industry various terms are used to define the term risk but they do not have universal acceptance. Nevertheless, the definition by Oxford clearly states that everyone generally understands the meaning of the term risk and the concept itself. According to Bootbroyd (2000) he mentioned that "the concept of risk is probably as old as the Bible, but the discipline of Risk Management itself arrived in the insurance industry during the mid-1500s. In these days brokers and underwriters were only concerned with the 'pure' risk or 'downside' looking at the loss or break-even scenario of a lost ship or cargo. That has come a long way since then." In comparison, today Risk Management is more concerned about maximising gains over potential treats. Wysocki (2000) stated that risk as a change that may occur in the environmental conditions. This change is basically associated with the estimated loss or a chance of event to occur, which can be both estimated, and the choice of the project manager on how to reduce the risk factor or the loss that may occur. Moreover, Chong (2000) argues that there are no projects that run smoothly and according to plan. This is because there is no such a thing as a risk-free project. Running project require a lot of planning and some occasional changes to be made to meet the unexpected. However, a good project manager is the one that is able to understand the risks so that he is able to successfully adjust the project by altering the plans when the unexpected risks come in the way.