Examining the risk analysis procedures in the commercial banking sector in Uganda: A case study of Orient Bank

Abstract

The purpose of the study was to examine the risk analysis procedures in the commercial banking sector in Uganda using Orient bank as the case study. The objectives of the study were, to establish the risk analysis procedures in the commercial banking sector in Uganda, to evaluate the challenges of risk analysis in the commercial banking sector and identifying strategies for improving risk analysis procedures in the commercial banking sector in Uganda. The researcher used a cross sectional research design which was quantitative. Simple random sampling technique was used to select 40 respondents from the employees of Orient bank for data collection. A closed ended questionnaire was used. The study findings revealed that; Orient bank takes into consideration certain issues like creation of awareness amongst employees on their role in risk management and the bank’s policies and procedures are constantly reviewed and communicated to all staff. Among the challenges, the study found out that the bank lacks accurate, reliable and timely data available for proper risk analysis; there is a challenge faced in understanding potential risks associated with new products and business lines and also the challenge of managing risk exposures while remaining profitable. The most important strategies to improve risk analysis include; making risk plans and committing resources to acquire skilled man power as well as resources for reviewing policies and procedures for proper risk analysis.