IMPACT OF RISK MANAGEMENT ON THE PERFORMANCE OF COMMERCIAL BANKS , IN SRI LANKA.
- Department of Accountancy and Finance, Faculty of Management Studies, Rajarata University of Sri Lanka, Mihintale , Sri Lanka.
- Department of Business Management, Faculty of Management Studies, Rajarata University of Sri Lanka, Mihintale , Sri Lanka.
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Risk management is a cornerstone of practical banking practice and mismatch of return is raised in economic issues in any country. Therefore the study examined how risk affects to the performance of commercial banks in Sri Lanka. For this purpose the current study selects credit risk, liquidity risk, operational risk and capital management risk as independent variables while return on assets and return on equity are utilized as dependent variables. The focus sample is covered by thirteen commercial banks for the period of six years from 2011 to 2016 and data analysed through SPSS package. The results of the study revealed that, operating risk has significant relationship with financial performance and capital management risk has significant relationship with only return on equity of commercial banks in Sri Lanka. Based on the research findings study recommended commercial banks have to control their operating risk, through operating expense level.
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[W. Percy Wijewardana and P. D. Wimalasiri. (2017); IMPACT OF RISK MANAGEMENT ON THE PERFORMANCE OF COMMERCIAL BANKS , IN SRI LANKA. Int. J. of Adv. Res. 5 (Nov). 1441-1449] (ISSN 2320-5407). www.journalijar.com
Rajarata University of Sri Lanka
