Risk Management and Financial Performance of Financial Institutions in Rwanda; A Case Study of Urwego Bank PLC
International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
www.ijsr.net | Open Access | Fully Refereed | Peer Reviewed International Journal

ISSN: 2319-7064



Research Paper | Management | Rwanda | Volume 8 Issue 5, May 2019

Risk Management and Financial Performance of Financial Institutions in Rwanda; A Case Study of Urwego Bank PLC

Alice Gasatura, Dr. Patrick Mulyungi

The general objective of this study was to assess the effect of risk management on financial performance of financial institutions in Rwanda. Its specific objectives were to determine the effect of risk identification on the performance of Urwego Bank Plc, to identify the effect of risk analysis and assessment on the performance of Urwego Bank Plc and to analyze the effect of risk monitoring and control on the performance of Urwego Bank Plc. In this study, a descriptive survey has been carried out. The target population in this study equaled to 30 staff of Urwego bank who are concerned with risk management and the researcher will focus staff involved in executive level, senior leaders, risk management and compliance department and internal audit department. The total population was considered as sample. The questionnaires were administered by multiple approaches that include drop and pick later basis and use of emails to contact the respondents. The collected data were firstly captured in Microsoft Excel, checked for completion and coded. The data for this study were analyzed quantitatively using percentages, frequencies and linear regressions. Descriptive and inferential statistics were used to find out the effect of risk management on financial performance of financial institutions in Rwanda, considering Urwego Bank Plc as the case study. Statistical Package for Social Scientists was used to execute multiple linear regressions. The results are presented using tables for ease of understanding. The researcher concluded that adequate risk identification measures in Urwego Plc would lead to its positive financial performance. This has been concluded from the correlation analysis of the variables in the study. The beta coefficients realized in the regression equation were all positive which is a clear indication that an increase in risk identification practices including identification of credit risks, market risks, operational risks and reputational risks would lead to positive results in growth of sales volumes, growth in market share and return on equity. The researcher further concluded risk analysis and assessment have positive effect on financial performance of Urwego Bank Plc. Therefore the amount of money invested in risk analysis and assessment would increase the financial performance of Urwego Bank Plc. Hence banks have to increase their efforts in risk analysis and assessment by prioritizing risks, using historical & forecasted information for risk assessment and performing qualitative risk analysis. Finally, the study established a positive and high effect of risk monitoring and control and financial performance of Urwego Bank Plc. Therefore the researcher concluded that the study variables are highly correlated. The researcher recommended that managers of banks especially the ones dedicated for risk management should put many efforts in risk identification, risk analysis and assessment and risk monitoring so that they are aware of the risks that may hinder the financial performance of the banks under their management.

Keywords: Risk Management, Financial Performance, Financial Institutions

Edition: Volume 8 Issue 5, May 2019

Pages: 1893 - 1897

Share this Article

How to Cite this Article?

Alice Gasatura, Dr. Patrick Mulyungi, "Risk Management and Financial Performance of Financial Institutions in Rwanda; A Case Study of Urwego Bank PLC", International Journal of Science and Research (IJSR), https://www.ijsr.net/search_index_results_paperid.php?id=ART20198037, Volume 8 Issue 5, May 2019, 1893 - 1897

91 PDF Views | 77 PDF Downloads

Download Article PDF



Similar Articles with Keyword 'Risk Management'

Research Paper, Management, Sierra Leone, Volume 9 Issue 2, February 2020

Pages: 973 - 978

The Essence of Risk Identification in Project Risk Management: An Overview

Crispin George

Share this Article

Research Paper, Management, India, Volume 3 Issue 12, December 2014

Pages: 843 - 847

Assessment of Stress Management, Risk Management & Security Management in Events

Ashlesha M. Tambde, Nikhil A. Maske

Share this Article

Research Paper, Management, Kenya, Volume 3 Issue 5, May 2014

Pages: 1823 - 1828

An Assessment of Financial Risk on Growth of Private Middle Level Colleges in Kenya: A Case Study of Nakuru Town

Gichuki S. Njuguna, Kwasira Josephat, Kalio, A

Share this Article

Research Paper, Management, Albania, Volume 4 Issue 10, October 2015

Pages: 1455 - 1459

Banks?Internal Control System, the case of Albania

Artur Ribaj

Share this Article

Research Paper, Management, Indonesia, Volume 6 Issue 4, April 2017

Pages: 1587 - 1590

The Implementation of Risk Management in the Internal Audit Planning in the Ministry of Energy and Mineral Resources

Purwanto, D. S. Priyarsono, Sri Hartoyo

Share this Article

Similar Articles with Keyword 'Financial Performance'

Case Studies, Management, India, Volume 3 Issue 12, December 2014

Pages: 1950 - 1953

A Case Study of Efficiency Analysis on Power Grid Corporation of India Ltd

Dr. Surbhi Gupta, Mohit Gupta

Share this Article

Research Paper, Management, India, Volume 9 Issue 7, July 2020

Pages: 708 - 711

Effect of Amalgamation on Financial Performance: A Case Study of Canara Bank Ltd

Yogashree C

Share this Article

Research Paper, Management, Indonesia, Volume 9 Issue 6, June 2020

Pages: 1109 - 1115

The Effect of Free Cash Flow and Financial Leverage on Financial Performance of Toll Road Infrastructure and Building Construction Companies Listed on the Indonesia Stock Exchange for Period 2014-2018

Finna Delphinia Santoso

Share this Article

Research Paper, Management, Kenya, Volume 6 Issue 5, May 2017

Pages: 1993 - 1999

Effect of Budgetary Control on Financial Management in Stima Savings and Credit Cooperative Society, Kenya

Mwangi T. Wairimu, Wekesa M. Wanjala

Share this Article

Research Paper, Management, India, Volume 4 Issue 2, February 2015

Pages: 1758 - 1763

A Study on Financial Performance of New Generation Private Sectors Commercial Banks in India

C. Kandasamy, C. Indirani

Share this Article

Similar Articles with Keyword 'Financial Institutions'

Research Paper, Management, India, Volume 9 Issue 6, June 2020

Pages: 728 - 731

Significance of Microfinance in Emerging Economies

Dr. Babar A Khan, Saif Ali Khan

Share this Article

M.Tech / M.E / PhD Thesis, Management, Malaysia, Volume 5 Issue 6, June 2016

Pages: 2341 - 2344

Testing the Validity Model for Measuring Customer Confidence Using (CFA)

Ridowan Mohamed Ahmed, Dr. Fuadahbinti Johari

Share this Article

Research Paper, Management, Kenya, Volume 4 Issue 4, April 2015

Pages: 973 - 980

Factors Influencing Growth of Youth Owned Small and Medium Enterprises in Nairobi County, Kenya

Huka Sharu, Dr. Wario Guyo

Share this Article

Research Paper, Management, Ethiopia, Volume 5 Issue 6, June 2016

Pages: 1679 - 1686

Challenges and Opportunities of Micro and Small Munifacturing Enterprises the Case of Easter Zone of Tigray

Desalegn Berhane Asgedom

Share this Article

Research Paper, Management, Cameroon, Volume 7 Issue 7, July 2018

Pages: 1203 - 1210

Managerial Compensation and Firm Performance in Cameroon Microfinance Institutions

Dr. Nkiendem Felix, Pr. Douanla Jean Christian, Dr. Essomme Innocent, Nchitu Polycarpe Asah, Gahmuti Roland N.

Share this Article
Top