The purpose of this study is to examine the effect of risk factors on the financial performance of Kuwaiti banks. The study based on the financial data of ten banks listed at Kuwait stock exchange (KSE) over the period 2008-2018. Return on assets (ROA) is used as the proxy of financial performance and operational risk, credit risk and liquidity risk as risk factors. Results of the research shows that the financial performance of Kuwaiti banks is mostly affected by operational risk and liquidity risk and that credit risk does not have any statically significant effect of their financial performance.