This study investigates the financial risk management practices among Small and Medium Enterprises (SMEs) in Mubi Metropolis, with the aim of understanding how these practices influence business performance, particularly profitability. A survey research approach was employed, involving a sample of 300 SMEs determined using the Taro Yamane formula. The study utilized both descriptive and inferential statistical methods to analyse the data, providing a comprehensive overview of the financial risk landscape within the SME sector in this region. The regression analysis focused on seven key financial risks: liquidity, credit, operational, market, interest rate, currency, and compliance risks. The results reveal that these financial risks significantly impact the profitability of SMEs. Specifically, liquidity, compliance, and operational risks were found to have a negative effect on profitability, emphasizing the critical need for SMEs to adopt robust financial risk management strategies. The study also explores the socioeconomic characteristics of business managers in Mubi, revealing a diverse and dynamic group with varying levels of experience, education, and backgrounds. The frequency distribution of SMEs by type indicates a vibrant local economy, with retail shops, sachet water production, block making, and poultry farming being particularly prominent sectors. The analysis of financial risk management practices among these SMEs shows a diverse approach, with a strong emphasis on cash flow management, budgeting, and forecasting. In conclusion, this study highlights the significant impact of financial risks on SME profitability and the importance of adopting effective risk management practices. The findings provide valuable insights for business managers and policymakers aiming to support the sustainability and growth of SMEs in Mubi Metropolis. The study recommends that both business managers and policymakers must prioritize effective financial risk management to enhance the financial health and performance of SMEs.