Risk Management Practices in Banking Sector in Ethiopia: The Case of Awash Bank S.C.

Abstract

the purpose of this study is to empirically examine the Risk management practice in Awash bank SC. The study is used descriptive survey method and applies a mixed method research strategy for each stratify as representative sample by taking the quantitative method as the major component, while the qualitative method plays a supplementary role. Data was collected from Awash bank S.C. Permanente staff and analysis was carried out using descriptive statistic supporting by SPSS v 23. Based on the descriptive and analytical analyses results of the questionnaire data, Likewise, the overall usefulness of the risk management practices in Awash bank SC is found well prefund by the managing credit risk based on the empirical data analysis. This thesis unveils higher mean of agreement between the managing market risk and the risk management practices. These results indicate that the managing liquidity risk is also another valuable aspect to improve the usefulness of the risk management practices Awash bank SC. Furthermore, the descriptive statistics result stated that managing liquidity risk with the risk management practices has been found and endorses that it is important for the management to give more consideration to deal with the liquidity risk in order to bring improvement in the risk management practices of local banks. This study further confirms the role of managing operational risk in the whole banking risk management approach and has found moderates of implementations of the managing operational risk and the risk management practices in Awash bank SC is strongly minimized its credit risk. Therefore, the banking sector and other related sectors should be introduced with the necessary work to be completed on this subject, nonetheless by making a start with the determination of the road maps and national initiatives.