Knowledge Management in Banks – The Unexplored Potential in Risk Management

Knowledge Management (KM) is an exercise undertaken by the modern organizations to identify, conserve, develop, retain and deploy knowledge and its application for learning of the employees across the organization with intent to maximizing the knowledge based growth of the organization. This end can be achieved by transforming the organization into a "Learning Organization". Knowledge Management practices may be introduced as a solution to meet business challenges such as gaining larger market share, stemming fall in profits, improving employee efficiency and productivity or even improving asset quality in the banks. The scope of activities performed under the banner of knowledge management will depend on the motive behind Knowledge Management Programme. The instant paper examines a general application of KM with specific reference to the banking industry and addresses the question of how useful is the application of Knowledge Management to the financial sector and banks and what the related issues that need to be addressed are. It also presents the analytical views on how the application of KM may be extended to the unexplored segments of banking industry like recruitment, training and improving asset quality.