ASSESSMENT OF RISK MANAGEMENT PRACTICE ON DEBUB GLOBAL BANK S.C

Abstract

Risk Management is the application of proactive strategy to plan, lead, organize, and control the wide variety of risks that are rushed into the fabric of an organization’s daily and long-term functioning. To this end the main objectives of this study is to examine the risk management practice of Debub Global Bank focusing on risk identification, risk measurement, risk monitoring and controlling of major risks. To achieve the objectives of the study data had been collected from employees of the bank through questionnaire designed based on Likert rating scale. The study adopted a descriptive research design which assisted to examine the risk management practice in the bank. The collected data were edited, coded and entered in to SPSS statics software and descriptive analysis tool such as frequency; mean value and standard deviationwere used to analyze the data. The finding showed that credit risk, liquidity risk and strategic risks are the types of risks that are described ashigh risk in the bank. Moreover, the overall level of risk management in the bank is found acceptable, but not adequate enough to mitigate the effect of major risks in the bank. To improve the risk management practice in the bank promoting common understanding of risk management policy, procedure and system across the organization, adopting Enterprise Risk Assessment (ERA) tool and organizing and staffing units responsible for risk management in branches as well as setting clear responsibility were among the recommendations forwarded.