Assessment Of Risk Management Analysis In Ethiopia Banking Sectors

The purpose of this article is to examine the effectiveness of commercial banks' riskrnmanagement practices in Ethiopia. Using a contemporaneous mixed study approach, data wasrncollected from 17 purposefully sampled commercial banks. 108 respondents fromrncommercial banks were given open-ended and closed-ended questionnaires. Thernquestionnaires asked about the importance of risk management practices, risk identification,rnrisk monitoring, and the nature of risk management practices, among other things. Thernpaper's main conclusions are that risk managers consider risk management to be critical torntheir bank's performance; credit risk, operational risk, liquidity risk, interest rate risk, andrnforeign exchange risk are the types of risks that cause the most exposures; current riskrnmanagement practices have a reasonable level of success, and banks are implementing somernof the approaches/techniques. Overall, the findings suggest that Ethiopian banks are indeedrnrisk-averse. Some recommendations were made, including that banks should prioritize riskrnmanagement training for their employees, make risk visible, measurable, and manageable,rnand embed a meaningful risk culture throughout all processes and activities

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