It is important for banks to carefully assess their own unique circumstances and capabilities, conduct thorough analysis, and tailor their strategies accordingly. While it can be valuable to learn from the experiences of other banks, adopting their strategies without considering the specific context and requirements of the organization may lead to unfavourable outcomes.
Therefore, Boards should be cognizant of their business model and its potential downsides, both in near term and in future. (c) Thirdly, there is operational risk due to various factors such as high attrition, lack of succession planning, skilling of staff, outsourcing, etc. (i) Attrition and high employee turnover lead to loss of institutional knowledge, disruption in services and increased recruitment costs.