Risk Management: A Tool for Enhancing Organizational Performance

The purpose of this comparative study is to examine the risk management system of banks and its impact on their performance. For this study, the primary data was collected using closed - ended questionnaire and analyzed through independent sample T- Test and correlation. The secondary data was collected from financial statements of the banks and analyzed through financial ratios. The finding of research showed that Conventional Banks have more effective risk management process as compared to the Islamic Banks. The findings also showed that risk management has a negative non significant relation with operational performance where as it has positive relation with financial performance.