Risk management and efficiency of works

Anotace: The people are achieving equal aims and goals have forming Cooperatives Society. It has made access to capital market for the people of poor, middle class, and illiterate in rural area whereas this became one of the wonderful business models in urban area. Risk management always has been included, but different stakeholders most critical of all risks faced by depository institutions. Though regulatory prerequisite imposed to Cooperative has not standard as imposed to banks by central bank, and the number of risks has been observed in this sector. Along with the horizontal and vertical growth of Cooperatives, it diluted the ethical practices, and resulted issues, such as adverse selection problem, lack of transparency and poor governance system. The study has analysis of risk management and efficiency of work and using in both quantitative and qualitative methods. A strong and prompt regulation should be imposed to eliminate such unfair practices. Credit risk management of Cooperative does not seem to be satisfactory so, concern authorities should select an appropriate credit risk management systems and management should give emphasis for credit risk management. Risk variables are significantly associated with financial performance, efficiency, and organizational factors. Credit Vulnerability Ratio of long-term solvency risk and credit default risk are 55% and 10% respectively and indicate the level of sensitiveness or danger of those variables during the day-to-day operation of Cooperatives to manage risk. A huge discrepancy on sizes of activities between the Cooperatives, unanimous regulatory direction for policy reform may not be effective for this sector.