[01] Eleazer Fianko Ofei, Department of Business Administration, Accra Institute of Technology, Accra, Ghana.

Risk management in bank servers is a crucial component of internal control in selecting which control actions to perform. It is the process of identifying and analysing major threats to the entity's objectives and determining the appropriate response. Risk is essential in the banking sector as it defines the ability for banks to sustain their profits in the midst of uncertainties. The purpose of the study was to assess the effect of risk management practices on the financial performance of Ghanaian banks. The study used an exploratory research methodology, with a target population of 20 banks, and a sample size of 676 respondents from the board and management committees and operational employees. The study relied on primary data gathered via questionnaires. The data gathered was analyzed using hierarchical linear regression. The study's findings indicate a strong positive relationship between risk management and financial performance which implies as risk management practices are increased financial performance also increased; it was also discovered that risk management had a significant positive effect on the performance of Ghanaian banks. This implies that risk management practices were effective and led to an increase in the financial performance of banks. Based on these findings, the banks should ensure that their risk management processes are carried out according to established rules and procedures and monitor to ensure that staff disclose deviations that require prompt attention.

Internal Audit, Risk Management, Bank of Ghana, Financial Performance

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