EXAMINING THE INFLUENCE OF RISK MANAGEMENT STRATEGIES ON FINANCIAL PERFORMANCE A CASE STUDY OF PRIDE MICROFINANCE – MUKONO BRANCH
No Thumbnail Available
Date
2025-09-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Uganda Christian University
Abstract
The study examined the influence of risk management strategies on financial performance; A
case study of pride microfinance – Mukono branch. The study was guided by the following
objectives; to examine the effect of Risk identification on financial performance of pride
microfinance Mukono branch, to establish the effect of Risk assessment on financial
performance of pride microfinance Mukono branch and to assess the effect of Risk monitoring
on financial performance of pride microfinance Mukono branch.
The study adapted the descriptive survey design. Amin (2005) describes the survey design as a
method that involves collecting information from members of a target population by considering
the current status of that population with respect to the study variables.
the Key findings included :Respondents perceived risk management strategies positively, with
means above 3.8. Correlation analysis showed significant positive relationships between risk
identification (r = 0.446, p < 0.01) and risk monitoring (r = 0.422, p < 0.05) with financial
performance. Risk assessment was not significant (r = 0.273, p > 0.05).Regression analysis
confirmed the model’s significance (R-squared = 0.292, p = 0.012), with risk identification (β =
0.343, p = 0.035) as the strongest predictor, followed by risk monitoring (β = 0.318, p = 0.080).
Risk assessment had no effect. Overall, effective risk identification and monitoring enhance
financial performance by reducing losses and improving stability.
The study concluded that risk management strategies, particularly identification and monitoring,
significantly influence financial performance at Pride Microfinance Mukono Branch. Effective
identification reduces potential threats like non-performing loans, while monitoring ensures
ongoing mitigation, leading to improved profitability and liquidity.
Description
Undergraduate Research