| dc.description.abstract | This study aimed at examining operational risk among commercial banks in reference to Stanbic Bank Uganda. The study was premised on three objectives: to examine the different operational risk management practices used by Stanbic Bank Uganda, to identify challenges faced in the process of operational risk management at Stanbic Bank Uganda Limited, and to establish strategies that can be used to improve operational risk management practices at Stanbic Bank Uganda. The study employed a cross-sectional and descriptive research with a quantitative study approach which involved collecting numerical data from 85 respondents out of a sample of 108 Stanbic bank staff, using a survey questionnaire. Data were analyzed using the statistical package for social science (SSPS Version 23). On operational risk management practices used by Stanbic Bank, the study identified improving areas where operational failures had occurred , analyzing operational failures and shares lessons learnt with all staff to prevent failures in future, creating teams that deal with quality performance issues such as poor customer service, emphasizing learning from operational risk failures, continuously assessing operational risk in any activity before taking key decisions and continuously monitors operational failures in order to improve processes, systems and up skilling of staff. Among the challenges, study identified; high operational risk exposure due to external factors, failure to see the risk management process as iterative, failure to discuss risk-related lessons learned, lack of adequate operational risk awareness and culture among the staff and management and, inadequate operational risk policies and procedures that are not aligned with the best practices and regulatory requirements. Therefore, the study recommended that commercial banks develop key risk indicators that can alert leadership to potential issues, that commercial banks combine cybersecurity and operational risk modeling to identify and mitigate risks, and that commercial banks train their employees to anticipate what could go wrong, especially when a bank unit is about to do something new. Furthermore, the study recommends that commercial banks evaluate their risk profile to reduce operational risks and improve information security and that banks should provide appropriate resources to the necessary committees to increase their efficiency towards ORM. This study will be necessary to Stanbic bank Uganda, Bank of Uganda and the banking industry at large as it will act as a guiding tool in ORM. | en_US |
