The present complexity of financial environment gives birth to various types of risks, especially to banks. The banking industry has to cope up with changing conditions on regular basis. Globalization, updated technology and various other types of financial thrust banks to various types of risk. Risk management helps to identify the risks and provide guidelines for handling them. Risk management is an ongoing process and does not end once risks have been mitigated and identified. Present paper tries to find out the various types of risks faced by the banking industry and the process that they follow to manage the same. The data for the same has been collected from secondary sources i.e. from journals, publications, books and online. In order to grow and sustain in the market, banks have to mitigate these risks.