MJAMR

The Role Of Risk Management On The Financial Performance Of Organizations: A Case Of Study Centenary Bank Ibanda Municipality Western Uganda

Twinomugisha Patrick.


Abstract

The study examined the role of risk management on the financial performance of organizations, using Centenary Bank in Ibanda Municipality, Western Uganda as a case study. The research objectives were to examine the relationship between capital adequacy, financial gap ratio, cash generation, and the financial performance of organizations in Ibanda Municipality. The study employed a cross-sectional descriptive research design that incorporated both quantitative and qualitative approaches. The study population comprised 258 organizations operating in the five divisions of Ibanda Municipality, with a sample size of 157 respondents derived using Sloven's formula. Both probability and non-probability sampling methods were used to select the respondents. The study found that capital adequacy had a positive and significant relationship with the financial performance of organizations in Ibanda Municipality. Furthermore, the financial gap ratio and cash generation also had positive and significant relationships with the financial performance of organizations in the region. The study concluded that effective risk management, including maintaining adequate capital, managing the financial gap, and generating sufficient cash, played a crucial role in enhancing the financial performance of organizations in Ibanda Municipality. The study recommended that organizations in Ibanda Municipality should prioritize risk management practices, particularly by maintaining adequate capital levels, managing their financial gap, and generating sufficient cash to improve their overall financial performance. Additionally, the study suggested that policymakers should develop and implement robust regulations and guidelines to ensure that organizations in the region effectively manage their risks to enhance financial stability and growth.

Keywords

Risk Management Financial and Performance
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Twinomugisha Patrick. (2024). The Role Of Risk Management On The Financial Performance Of Organizations: A Case Of Study Centenary Bank Ibanda Municipality Western Uganda. Metropolitan Journal of Academic Multidisciplinary Research, 3(7). https://journals.miu.ac.ug/pages/article.php?article_id=1845