Banking institutions in the United States of America make economic decisions on a daily basis, particularly regarding credit facilities. Risk management has been considered as a critical ingredient that determines the success or failure of financial institutions. Nonetheless, little scholarly attention has been paid to this important factor. This research study seeks to emphasize the need for banking institutions to embrace more elaborate economic decision-making and risk management processes. The case study of the Ames National Corporation (ANC) is used to exhibit how banks can augment their ability to manage risks in their operations and in financial decision-making. Undeniably, the fundamental goal of every institution revolves around the maximization of the shareholder wealth while raking substantial profits. This facilitates the expansion or the development of new products. Statistics indicate that risk management in credit, market, and operations is an area that erodes a great proportion of the revenues.