The Effect of Operations Risk Management on the Perfomance of a Financial Institution: a Case Study United Bank for Africa (Uba)

Abstract

The study entitled the effect of operations risk management on the performance of financial institutions was based on the following objectives; to examine operations risk management practices employed in UBA, to establish the contribution of operations risk management on the performance of UBA, and to investigate the limitations of operations risk management in UBA and suggest solutions.

The researcher employed a case study design. The study was carried out at United Bank for Africa, spear house, Jinja road, Uganda. The study was based on a sample size of 40 that was drawn from a population of 45. Data was collected by the use of questionnaire and interview guide.

The findings were that UBA has strategies on how to respond to risks, identifies and quantifies its exposure to risks, Security risk assessment is done for physical and technological infrastructure.

This implies that in UBA before new products are introduced there is a risk assessment, there are adequate procedures for addressing weaknesses identified, and there are management systems that provide accurate and timely information. Besides that bringing out high risk areas in UBA helps the company meet its objective, and Due to organized risk management activities UBA has, more capital is allocated to income earning activities. Nevertheless, overload, and Lack of knowledge are the most limitations of operations risk management in UBA.

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