Is there risk of needing hand amputation from diabetes?

Yes. Diabetes is an important risk factor for amputations. These most commonly are required for problems (gangrene, infection) that develop in the toes and feet. Such problems can develop in the fingers and hand but are far less common than in the lower extremities. Good control of blood sugar and preventative foot care are very important ways of lowering the risk of amputation.
Depends. Long standing neglected poorly controlled diabetics lower extremity is more often involved than upper extremity. More often legs are amputated rarely hands.