UCU Scholar :: Browsing by Author "Margret Tuhirirwe"

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The Effect of Risk Management on the Financial Performance of the Financial Institutions: A Case Study of Centenary Bank Kabale Branch in Kabale Municipality South Western Uganda
(Uganda Christian University, 2024-09-16) Margret Tuhirirwe
This study explores the effect of risk management on the financial performance of centenary bank, with a focus on risk identification, risk evaluation and mitigation. Using a quantitative approach, data was collected through a structured questionnaire distributed among the bank employees. The responses were analyzed to assess the effectiveness of the banks risk management practices and their influence on the financial performance indicators such as Return on Equity, profitability and return on Assets. The findings reveal that risk evaluation practices are generally regarded as effective with a majority of respondents agreeing that these practices help in minimizing financial losses and optimizing decision making. However some respondents expressed concerns about the banks’ ability to align the risk evaluation process with its objectives which potentially impact the financial performance. However, the study confirmed a positive relationship between proactive risk mitigation strategies and improved financial stability. This study concludes by emphasizing the need for continuous risk assessment and adoption of risk management frameworks to enhance financial outcomes in dynamic financial environment.