EXPLORING THE INFLUENCE OF RISK MANAGEMENT ON COMMERCIAL BANK PERFORMANCE IN SUDAN: AN EMPIRICAL STUDY

This study aims to examine the impact of operational, credit, and liquidity risks on the financial performance of Sudanese commercial banks and then to make recommendations that improve risk management practices. The study sample consists of 27 banks for the period 2017-2021, and the data were collected from the annual reports of these banks. The study used the fixed effects model to test the hypotheses of the study. The results of the study showed that the operating risks are represented by managerial weakness, fraud, and the underuse of technology. Credit risks arising from non-performing loans and inadequate risk assessment practices,and Liquidity risks allhave a significant negative impact on the financial performance of commercial banks in Sudan, especially during periods of recession and economic instability. These significant and critical outcomes necessitate effective risk management strategies to mitigate these negative effects. Strengthening the regulatory framework to better align with international banking standards, modernizing banking infrastructure to improve operational efficiency, and strengthening the legal and institutional environment to support sustainable financial practices, and consequently, contributing to the flexibility and upgrading the overall profitability of Sudanese banks.