International Journal of Engineering Research in Electronics and Communication Engineering

Risk Management Practices: an Empirical study on Ethiopian Commercial Banks

Author : LEMAA BELAY ZELEKE ¹ Dr. SINDHU ²

Date of Publication :20th May 2021

Abstract: The purpose of study was to investigate the association of risk management practice with risk management aspects such as, understanding risk, risk identification, risk assessment and analysis, risk monitoring and controlling, managing credit risk, managing market risk, managing liquidity risk and managing operational risk in Ethiopian commercial banks. A crossectional study design and a structural questionnaire on aspects of risk management have been used containing 52 questions of five point likert scale. A total of 207 questionnaires have been distributed to collect the data from Risk Management experts of Ethiopian commercial banks but 204 questionnaires were received for analysis. OLS Regression and one-way ANOVA have been used to test the hypothesis. Descriptive result indicated as risk identification and managing credit risk are efficient in Ethiopian commercial banks. Besides, regression result revealed that risk understanding, risk assessment and analysis; risk monitoring and controlling has significant association with risk management Practice in Ethiopian Commercial banks. Similarly, managing Credit risk, managing market risk, managing liquidity risk and managing operational risk are significantly associated with risk management practices in Ethiopian banks.

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