This study examines the risk management and its impact on profitability of commercial banks in Nepal. The return on assets and return on equity are the dependent variables. The independent variables are non-performing loan, capital adequacy ratio, credit to deposit ratio, cash reserve ratio, current ratio and liquid assets ratio. This study is based on secondary sources of data that are collected for 10 commercial banks through 2011/12 to 2020/21, leading to a total 100 observations. The data were collected from Bank Supervision Reports published by Nepal Rastra Bank and annual reports of the selected commercial banks. The study used both descriptive and inferential statistical tools to analyze the data. The regression models are estimated to test the significance of risk management and its impact on profitability of commercial banks in Nepal. The result shows that capital adequacy ratio is positively related to return on assets. Likewise, the study reveals that current ratio is positively related to return on assets and return on equity. However, the study reveals that capital adequacy ratio is negatively related to return on equity. Likewise, the study reveals that credit to deposit ratio, non-performing loan ratio, cash reserve ratio and liquid assets ratio are negatively related to return on assets and return on equity. The regression result shows that beta coefficients are negative for capital adequacy ratio, credit to deposit ratio, non-performing loan ratio and liquid assets ratio with profitability. However, the study reveals that beta coefficient is positive for current ratio with profitability. The recommendation is that banks should design and formulate strategies that will not only minimize the exposure of the banks to risk but will also enhance profitability.