The Effect of Board Risk Management on Financial Performance of Selected Saccos in Kiruhura District, Uganda

Benon  Kyabarongo; Moses Agaba; Francisis Munyabonera; Eliab  Mpora; Cliff  Kikawa; Oliver  Ahabwe

doi:10.17613/g4mb-6s30

Authors

Benon Kyabarongo Kabale University Author
Moses Agaba Kabale University Author
Francisis Munyabonera Kabale University Author
Eliab Byamukama Mpora Kabale University Author
Cliff Kikawa Kabale University Author
Oliver Ahabwe Kabale University Author

DOI:

https://doi.org/10.17613/g4mb-6s30

Keywords:

Corporate Governance, Board Risk Management, Financial Performance, Uganda

Abstract

Corporate risk management, and important ideas among Sacco’s in Uganda are board risk management and financial performance. The study's general objective was to determine the effect of board risk management affected the financial results of particular SACCOS in the Kiruhura District. This study used a cross-sectional survey research design using a quantitative research methodology. The sample size consisted of 184 respondents, staff and members from the six Sacco’s registered in the Kiruhura area of Uganda as of January 2023. A total population of 342 persons was used at a confidence level of 95% or an error of 0.05. Two stages separated the data that was collected for analysis. First, SPSS version 20.0 was used to conduct the preliminary data analysis and descriptive statistics on the respondents. In the second phase, structural equation modelling (SEM) was used to evaluate and investigate the structural relationships between the variables in the proposed conceptual model. These statistics included multicollinearity, mean and standard deviation, outliers and extreme values, and missing data. SEM was implemented using Jaffrey's Amazing Statistical Program (JASP) version 0.17.2.0. The study's conclusions were: The financial performance of savings and credit co-operative societies (Sacco’s) in Uganda was found to be significantly positively impacted by board risk management (BRM) (=1.322**), boosting Ha, The study concludes that SACCOs would experience greater financial gains or better financial performance if they are more stringent about the processes they follow to review their risk profile and the policies they put in place. The study recommends that; Sacco’s risk management committees of the board should be very effective in influencing the corporate risk management practices adopted within the SACCOs and that SACCOs should improve on the levels of BRM to achieve favorable financial results by applying careful attention to governmental regulations, rules and policies.

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Author Biographies

Benon Kyabarongo, Kabale University

Department of Management Sciences, Faculty of economics and management sciences
Moses Agaba, Kabale University

Department of Management Sciences, Lecturer
Francisis Munyabonera, Kabale University

Department of Economics and Statistics, Faculty of economics and management sciences
Eliab Byamukama Mpora, Kabale University

Department of Business Studies Faculty of economics and management sciences
Cliff Kikawa, Kabale University

Department of Economics and Statistics, Faculty of economics and management sciences
Oliver Ahabwe, Kabale University

Department of Management Sciences, Faculty of economics and management sciences

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