| 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. Risk management has a contribution to the achievement of the overall success of an organization. This study examines the risk management practices in Abay bank, Ethiopia. It also make an attempt to identify the role of risk management practices to the bank. Moreover, challenges of the bank while implementing risk management progams are assessed. To achieve the objective of the study, both primary and secondary data were generated by employing qualitative (using interview) and quantitative (mainly using survey questionnaires from employees of the bank) methods. The research instruments majorly used included a set of questionnaires; for the respondents. The data collected has been presented using descriptive techniques and especially frequency distribution tables, pie charts and bar graphs. Purposive sampling techniques were used to select 151 sample employeesrespectively. The research revealed that the bank has established a well-constructed risk management infrastructure and is following government (NBE) regulations. proper risk management systems planted in Abay bank has contributed to the overall success of the organization. Cyber security Breaches, The political situation (instablity) in the country are some of the challenges affecting the bank’s risk management practice. Based on the findings conclusion and recommendations were given. Recommendation has been given for other banks in Ethiopia to take the experience of abay bank as a role model in the practice of risk management. Security issues in the country must be guaranteed by the government, the management of the bank needs to give a great concern for security programs that can help to reduce the threats. the bank needs to devise a strategy to well equip its manpower with the necessary technology and training. Finally the need for further research is given as a recommendation. |
