Risk management practices in the commercial banks of Ethiopia Nade Abera Bayisasahu*, Dr. Sharma Dhiraj** *Ph. D Scholar in the School of Management Studies, Punjabi University, Patiala-147002, India **Assisstant Professor in the School of Management Studies, Punjabi University, Patiala-147002, India Online published on 24 October, 2019. Abstract The purpose of this study is to evaluate the degree to which the commercial banks in Ethiopia use effective risk management practices. Data is collected from 112 respondents mainly from the risk managers, risk experts, and credit analysts that work in the 14 selected commercial banks. A standardized questionnaire is used which contains 51 statements with a 7 point Likert scale categorized into six aspects of risk management practices, namely: Risk Management Practices (RMPs)-the dependent variable; Understanding risk and risk management (URRM); Risk Identification (RI); Risk Assessment and analysis (RAA); Risk Monitoring (RMO); and Credit Risk Analysis (CRA)-the independent variables. The study found that commercial banks in Ethiopia are somewhat efficient in managing their risks. A positive correlation is found between the Top Keywords Risk, Risk management practices, Risk management aspects, Commercial banks, Ethiopia, Credit risk analysis. Top |