Abstract
The rational of this study investigated the risk management practices (RMP) of SME banking. Therefore, evidences reserved from the Small & Medium Enterprise Bank Limited of Pakistan (SMEBL). For precision two-fold techniques for gathering of data used; from formal questionnaires and individual interviews using judgmental sampling. Various econometric and statistical  tools applied to test hypotheses. Findings reveal the regressive approach of the management and staff towards Risk Management. So comprehensive policy is required to reframe it including  training about Basel, risk-averse mechanism and technological advancement. Small & Medium Enterprise Bank Limited has thirteen corporate level branches as well as five recovery booths all  over Pakistan. Financing to Small & Medium Enterprises has a vital role in the economic growth of Pakistan. So, the remodelling of Risk Management (RM) in Small & Medium Enterprise Bank Limited  of Pakistan is duly favorable for regulators, academicians, management, investors and stakeholders. It is deemed as a first study to empirically explore study regarding RM in Specialized Financial  institution dealing with Small & Medium Enterprises of Pakistan.
Keywords- Non-Performing loans; Delinquency ratio; Basel regulations; Risk Governance,