Despite the significance of effective risk management practices in deepening prudent\nfinancial management in Ghana's Rural and Community Banks (RCBs) there appear to be a\npaucity of empirical studies highlighting the various kinds of risks faced by RCBs. Such\nstudies will enhance RCBs understanding of the extent to which Ghana's RCBs operations are\naffected by ineffective risk management practices. The purpose of this paper therefore is to\nexamine the extent to which Ghanaian Rural and Community Banks deploy risk management\npractices in addressing the types of risk affecting their operations using data through a survey\ninvolving respondents from Rural and Community Banks and Bank of Ghana/ARB Apex\nbank. The study uses primary data collected through survey questionnaire from respondents\nsampled from the RCBs and the Bank of Ghana/ARB/Apex Bank. The research also uses\nsecondary data collected from the ARB/Apex Bank quarterly reports on Rural and\nCommunity Banks operations in Ghana. Our empirical findings indicate that credit risk,\nliquidity risk, operational risk and legal /regulatory risk are the major forms of risk affecting\nrural and community banks in Ghana. The paper recommends the enforcement of risk\nmanagement regulations by the ARB Apex Bank and the Bank of Ghana. On the other hand,\nRural and community banks should create risk management department and recruit qualified\nand experience personnel to ensure effective and efficient risk management practices. The\nresearch focused on Rural and Community Banks in Ghana and as such the results may not\nnecessarily represent RCBs in other countries.
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