The Effect of Risk Management on Financial Performance in Uganda. A Case of Kabale Municipal Council, Kabale District.
To examine the effect of risk management on financial performance in Uganda. We explored literature on risk management and the relationships with financial performance in public sector organizations. We designed a theoretical relationship between risk management and financial performance. A descript...
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| Main Authors: | , , , |
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| Format: | Article |
| Published: |
Kabale University
2023
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| Online Access: | http://hdl.handle.net/20.500.12493/1282 |
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| Summary: | To examine the effect of risk management on financial performance in Uganda. We explored
literature on risk management and the relationships with financial performance in public
sector organizations. We designed a theoretical relationship between risk management
and financial performance. A descriptive research design was adopted and a sample size
of 169, which constituted council employees and beneficiaries was used. Data were
collected through questionnaires and interviews. The study found a significant effect of risk
management on financial performance. The study also established positive and significant
relationships between risk management and financial performance at (r = .627; sig. <.05).
Generally, risk management accounts for 39.3% of the total variations in the financial
performance of Kabale municipality. The study shows that local governments in Uganda have
strong risk management systems and are likely to register a 50% variation in their financial
performance. The study recommends to both public and private organizations improve their
risk management systems for high financial performance. The audit departments should
strengthen risk management and control activities at the department level. |
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