Risk management practices of commercial banks in Ghana

Peter Arhenful, Jones Adjei Ntiamoah, Kofi Opoku-Asante and Collins Owusu Kwaning

International Journal of Business Continuity and Risk Management, 2023, vol. 13, issue 4, 382-407

Abstract: This paper examined the risk management practices of commercial banks in Ghana. Using a survey design, data was collected through a paper-based questionnaire. The dependent variables were bank performance and risk management practices, while the independent variables were risk assessment and analysis, risk identification and understanding risk, and risk management. Structural equation modelling and correlation analysis were conducted using SmartPLS 3.3.8 and SPSS 26. A correlation was observed between risk assessment and analysis, risk identification, understanding risk and risk management and risk management practices. Furthermore, the analysis conducted using structural equation modelling indicated that the performance of commercial banks in Ghana was influenced by risk management practices, which were in turn influenced by risk assessment and analysis, risk identification practices, and a comprehensive understanding of risk and risk management. The study recommends that Ghanaian commercial banks establish bank policies that contain methods for identifying and managing potential risks.

Keywords: risk management practices; Ghana; bank performance; commercial banks; structural equation modelling; SEM. (search for similar items in EconPapers)
Date: 2023
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