Operational risk management framework in the banking industry : a case of DFCU bank Uganda
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The major purpose of the study was to assess the operational risk management framework of dfcu bank Uganda. The study objectives were to establish how the operational risk management works at dfcu bank, to identify the challenges in operational risk management framework at dfcu bank and to make recommendations on areas that need improvement. The study was cross-sectional in nature and used a case study qualitative research approach. The sample size of the study was three participants, who were selected purposively. Data was collected from both secondary and primary sources. Trustworthiness of the study was strengthened through credibility, transferability, dependability and confirmability. Data was analyzed used content analysis technique. The research revealed that Dfcu bank has continuously experienced several operational risks according to dfcu bank annual report 2018 (Karuhanga, 2018), such as internal fraud, external fraud which leads to pilfering of information or deliberately leaking it for that matter, hacking damage, third-party theft and counterfeit, employment practices and workplace safety, damage to physical assets which have been disastrous. The study recommends that Dfcu bank should put in place a good risk management feedback loop engulfing the six key components of; identifying, assessing and prioritizing risk, developing strategies and policies to measure risk, designing policies and procedures to mitigate risk, implementing and assigning responsibilities, testing effectiveness and evaluating results, and revising policies and procedures as necessary since the core of risk management is making educated decisions about how much risk to tolerate, how to mitigate those that cannot be tolerated, and how to manage the real risk that are part of the business.