NADUNGA IRENE2024-11-152024-11-152024-08-29https://hdl.handle.net/20.500.12311/2307ABSTRACT The research was undertaken to assess the effect of risk management on financial performance of commercial banks in Uganda. It was guided by three objectives; to assess the effect of risk identification on financial performance of Stanbic bank Mbale branch, to determine the effect of risk analysis on financial performance of Stanbic bank Mbale branch, to analyze the effect of response planning on financial performance of Stanbic bank Mbale branch. The researcher used a sample size of 63 respondents and used questionnaires and interview guide to collect data and later the data was analyzed using the statistical package for social sciences (SPSS). Results of the first objective showed that risk identification has a significant effect on financial performance of Stanbic bank Mbale branch. Results of the third objective showed that response planning has a significant effect on financial performance of Stanbic bank Mbale branch. 22% strongly agree, 29% strongly agree to the statement that employees are appropriate to the severity of the risk. The bank should establish a comprehensive risk management policy and framework that defines roles, responsibilities, and processes for identifying, assessing, and managing risks.enThesis