Risk Management Practices and Bank Performance: Evidence from Emerging and Developed Markets

Author(s)	Ms. Binita, Dr. Ramesh Bhavisetti
Country	United Kingdom
Abstract	Risk management has become a critical function in modern banking due to increasing financial volatility, regulatory pressures, and globalization. This study examines the impact of risk management practices on bank performance by comparing banks operating in emerging and developed markets. Using secondary data from selected commercial banks across both market categories, the study analyzes how credit risk, liquidity risk, operational risk, and capital adequacy influence profitability and financial stability. Bank performance is measured using Return on Assets (ROA), Return on Equity (ROE), and Net Interest Margin (NIM). The findings reveal that effective risk management practices significantly enhance bank performance in both emerging and developed markets, although the magnitude and direction of impact vary across regions. The study provides empirical evidence supporting the importance of strong risk governance frameworks and offers policy implications for regulators and banking institutions.
Keywords	Risk Management, Bank Performance, Emerging Markets, Developed Markets, Credit Risk, Liquidity Risk.
Published In	Volume 8, Issue 1, January-February 2026
Published On	2026-01-12
DOI	https://doi.org/10.36948/ijfmr.2026.v08i01.66490

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