Page 48 - Banking Finance February 2022

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thereby making the liabilities subject to rollover or professionally and productively. Customers will feel the
refinancing risk. impact of this elevated service, and it will improve their
opinion about the organization in the market.
IV. Interest Rate Risk (IRR): Interest Rate Risk (IRR) refers
to potential impact on NII or NIM or Market Value of
Equity (MVE), caused by unexpected changes in market Improves Task Management:
interest rates. Training and development programs help employees to
manage allotted tasks individually or in teams, relying on a
V. Foreign Exchange (Forex) Risk: Forex risk is the risk that
greater understanding of processes and clearly defined
a bank may suffer losses as a result of adverse exchange
rate movements during a period in which it has an open goals. Because employees are well-versed in the skills
required for their assigned job, they will require less time
position, either spot or forward, or a combination of the
two, in an individual foreign currency. to find ways to perform their required tasks.
VI. Reputation Risk: The risk due to severe impact on Improves the brand image of
bank's reputation.
organization:
VII. Compliance Risk: The risk due to failure of compliance
When an organization pays attention to developing the skills
VIII.Operational Risk: The risk due to inadequate or failed
of its workforce, its expertise and job satisfaction will spread
internal process.
the word, and more competent people will join the
IX. Legal Risk: The risk because of any legal action on bank organization where they can learn and utilize their abilities
due to failure of compliance with law. for the benefit of their beloved organization. Also it will
create a shiny brand image of the organization in the
Presently banks are focusing on conducting a lot of training market.
programs related to risk management and preventive vigilance.
Basic motive behind these types of program to spread Better Workplace environment:
awareness amongst its work force about preventives measures
against the given risks. Continuous training also prevents the Consistent training will help employees work more effectively
employees from learning by trial and error method. in the workplace environment as it also develops cultural
integration amongst the staff. Especially at the time of merger
or amalgamation of two or more entities it is not easy to
Prepares employee for higher create a comfortable environment for those employees who
responsibilities: came from non anchor banks or entities because of their
In spite of having an experience of various years some of different culture, work style, products, services and goals etc.
employees avoid to come out of the comfort zone and to get Training brings about an atmosphere in the organization that
assigned for higher responsibilities and challenges, but encourages every employee to feel valued and welcomed. It
Continuous training process develops confidence, motivation, also encourages employees to grab some bigger opportunities
Skills, knowledge, enthusiasm and courage amongst the by escalation of their job and roles.
employees so that they feel to grab bigger responsibilities that
make strong foundation of their beloved organization. Prepares future Leaders for the
Organization:
Improves Customer Service:
As per the theme of EASE agenda banks have started the
Customer service is one of the biggest and challenging succession planning of top leaders who are on the verge of
aspects of banking sectors in this competitive era. It may retirement. Training system with the help of HR team is able
detoriate the growth in consumer base and business of to identify the sparks amongst the eligible staff and prepare
banks, if they fail to serve the customers even one notch them to take over the responsibilities of top leaders.
below as per their expectations. That's why it is very
important to make the bank staff realize the importance of In India the banking industry is becoming more competitive
excellent customer. Training improves the soft skills of than ever, private and public sector banks are competing
employees on the job and makes them work more with each other to perform well. The top management of

48 | 2022 | FEBRUARY | BANKING FINANCE