Assessment of Risk Management Practice of Dashen Bank
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Date
2023-06-23
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A.A.U
Abstract
The aim of this paper is to analyze the effectiveness of risk management practice of dashen banks. Information was obtained from Dashen Bank risk management department staff by adopting quantitative method in a research design. Open and closed-ended questionnaires were administered to 100 respondents from risk management department. The questionnaires covered key aspects of risk management including the importance of risk management practice, risk identification, risk monitoring and nature of risk management practices. After the questionnaires were completed, the answers were analyzed using statistical processing software, SPSS . The main findings of this paper are: risk managers perceive risk management as critical to their banks performance; the types of risks causing the greatest exposures are credit risk, market risk, liquidity risk, interest rate risk and money laundry risk; and, banks are utilizing some of the approaches/techniques traditionally used to manage risks. Some recommendations were made and prominent amongst them were that Dashen Bank should give emphasis in staff training of the area of type of risk, identification of risk and management and they must make risk visible, measurable and manageable and ensure a meaningful risk culture throughout all processes and activities.
Key words: Dashen Banks, Risk Management, and Risk Management Practices