<b>Risk in Internet Banking A Theoretical Approach</b> Internet banking enables customers to do basic banking functions through online. It helps the customer to save time and effort. Introduction of technology brought a new face for banking industry that gives everything by a click. Risk plays crucial role in the development of banking system in our country. It is evident from the past studies there are different kinds of risk associated with internet banking.This study examines the various types of internet banking risks and the risk management methods employed in mitigating these risks. This study will explain more on various aspects of internet banking risks such as strategic risk, transaction risk, compliance risk, reputation risk, information security risk, credit risk, interest rate risk and liquidity risk, with the risk management methods. These risks should be recognized, attended to and controlled by banking establishments in a careful approach according to the basic attributes and challenges of internet banking services. Internet banking, Risk in internet banking, Types of internet banking risk, challenges of internet banking, Risk Management principles. 1090-1095 Issue-6 Volume-1 Dr. Anoop K. K