The aim of this paper is to analyze the effectiveness of risk management practice of commercialrnbanks operating in Ethiopia. Information was obtained from 15 purposely-sampled commercialrnbanks by adopting concurrent mixed research design. Open and closed-ended questionnaires werernadministered to 86 respondents from selected commercial banks. The questionnaires covered keyrnaspects of risk management including the importance of risk management practices, riskrnidentification, risk monitoring and nature of risk management practices. The main conclusions ofrnthe paper are: risk managers perceive risk management as critical to their banks performance;rnthe types of risks causing the greatest exposures are credit risk, operational risk, liquidity risk,rninterest rate risk and foreign exchange risk; there was a reasonable level of success with currentrnrisk management practices and, banks are utilizing some of the approaches/techniquesrntraditionally used to manage risks. Overall, the findings suggest that banks operating in Ethiopiarnare indeed risk-focused. Some recommendations were made and prominent amongst them werernthat banks should give emphasis on staff training in the area of risk management and they mustrnmake risk visible, measurable and manageable and ensure a meaningful risk culture throughoutrnall processes and activities.rnKey words: Commercial Banks, Risk Management, and Risk Management Practices