Assessment of risks and training practices for effective risk management in commercial banks at Wolkite town Ethiopia

The fast changing financial environment exposes the banks to various types of risk. Effective risk management is critical to any bank for achieving financial soundness. In view of this, aligning risk management to bank’s organisational structure and business awareness has become integral in banking business. Strategic plans and different financial techniques must have implement by the banks to avoid the financial uncertainty. Collecting up to date market information and providing sufficient training to the employees as well as management became a strategic part to every bank. In that process, this study was done in Wolkite towns, in Gurage Region, with the main objective of assessing the risk and implementing training methods for effective risk management practices of Commercial Banks. Accordingly, qualitative and quantitative study methods were employed and a total of seventy two respondents representing different sections of the banks were purposively selected and contacted. In doing so, great efforts were made to applying the bank exposure, financial and managerial skills and knowledge compositions of these respondents. The tools for data gathering were structured open and close ended questions.