Risk Management and its Implications in the Central Bank and Commercial Banks in Tanzania

This study investigated the impact of risk management with the main focus on the \napproaches adopted by the Central Bank and Commercial banks on the management \nof assets and liabilities in the financial institutions. The research was quantitative in \nnature applying questionnaires as an instrument for data collection. Primary and \nsecondary data sources were used too to serve the purpose. Respondents were \npurposefully sampled. Of the 30 respondents, 26 were working in commercial banks \nand 4 in the central Bank of Tanzania. The findings show that there are variations in \nviews regarding the best practices or techniques to be employed and opinion about \nthe impact of the measures taken to manage risks. The variation was also noted in \nrelation to the types of risks the Central bank and Commercial banks are facing and \non the measures to improve these risks management approaches or techniques. \nAlthough there is a general understanding about risk and its management among the \nstaff at various directorates or departments of risks at the Central bank and \nCommercial banks, still there is a need for these banks to devise a more sophisticated \nmeans of identifying the risk exposures.