Risk Management and Growth of Selected Commercial Banks in Hargeisa Somaliland

ABSTARCT This study investigated the relationship between risk management and growth of selected commercial banks in Hargeisa Somaliland, for this purpose which is to validate and test the existing information about it, to test the hypothesis of no significant relationship between them, to generate new knowledge based on the findings and also to identify strengths & weakness of banks in terms of all risk management items. The specific objectives of these study is to determine the profile characteristic of the respondent ,to determine the extent of risk management ,to determine the level of growth ,and to establish the significant relationship between the extent of risk management and the level of growth of selected commercial banks in Hargeisa Somaliland. The research design of this study employed descriptive correlation design because it deals with relationship between variables. The target population was 14o respondents of commercial banks managers and other employees both private and public, the sample size of the study consisted of 104 of respondents which was obtained using used Sloven’s formula and the sampling procedure of this study was employed stratified random sampling and purposive random sampling techniques. The research instrument by this study to collected data is questionnaire in terms of time and size and the questionnaire is none standardized . The validity and reliability of the research instruments was proved by expert , contents validity index ensured by subjecting the researcher devised questionnaires on risk and growth of commercial banks to judgment by the content expert. The findings of the study suggested the extent of the risk management and growth of selected commercial banks have significant effect correlated indicated by Pearson’s linear correlation, result that there is relationship between the variables. The researcher suggested that the risk management are clearly assigned and mitigated by operational managers of the banks which leads to growth of banks. As researcher, give advice in the commercial banks to make a technical assistance in the preparation of risk management in order to analyze effective and efficiency of the all types of risk management and also seek new ways to improvement and mitigation of risk. Commercial bank have to make clear follow ups procedure on borrowers and to also to emphasis their credit limit with having collateral security.