Risks exist that are inherent in the purpose for which banks are instituted. It is essential that these financial institutions including rural banks have the capability to manage these risks which may contribute to their sustainability. This study aimed to determine the institutional risk management of rural banks and its relationship to employee-related sustainability. Descriptive and quantitative research was utilized. A survey was administered to fifty-nine (59) rural banks in Region IVA in the Philippines. The questionnaire intended to measure how these banks manage their institutional risks, specifically social and commercial mission risks. Organizational sustainability was assessed as viewed through its employee-related dimension. This study also identified the type of institutional risk management that significantly influence employee-related sustainability. Findings showed that rural banks manage their institutional risks to a great extent and their organizational sustainability relative to employee-related dimensions is rated as high. Using the Spearman-rho correlation coefficient, a significant correlation was established between institutional risk management and employee-related sustainability among rural banks. Further, results of multiple regression identified commercial mission risk management as a significant predictor of employee-related sustainability. It is suggested that rural banks prioritize setting quarterly work plans that management reviews regularly to strengthen commercial mission risk management.