Enterprise Risk Management Practices in Ethiopian Private Banks Case Studies

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Date

2015-01

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Addis Ababa University

Abstract

The reluctance of banks to effectively run Enterprise Risk Management program was the concern of NBE for years. This Project paper, therefore, is aimed to explore the practice of Enterprise Risk Management in Ethiopian Private Banks. Currently, there are 16 private commercial banks working in the country, some of which are celebrating their 20 years anniversaries. To represent all the 16 private banks, the researcher grouped them in to three categories. Dashen, Nib and Addis International banks were selected from each category in simple random sampling method. The data was collected through questionnaire and face to face interview. The questionnaires were distributed to Risk Committee members of the Board; senior executives of the bank management; Risk Management Unit personnel and Chief Controller of each bank. The interview was made with NBE’s CBSD expert assigned by the Director. The research reveals that the practice is well understood by all stakeholders but is in its infant stage where continuous follow up and development requires.Key words: Enterprise Risk Management, Risk Management Program, Risk Management Unit, Chief Risk Officer, Credit Risk, Liquidity Risk

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Keywords

Enterprise Risk Management, Risk Management Program, Risk Management Unit, Chief Risk Officer, Credit Risk,, Liquidity Risk

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