Operational Risk, Risk Attitude and Organizational Performance of Financial Institutions in Uganda

Abstract

The purpose of this study was to investigate the relationship between operational risk, risk attitude and organizational performance of financial institutions in Uganda. This study took a cross sectional research design where a sample of 60 financial institutions was selected for the study. Primary data was collected using the questionnaire. Data was analyzed using SPSS (22) package and a correlation, and regression analysis were carried out. Findings revealed that there was a significant and positive relationship between operational risk, risk attitude and organizational performance. The results further revealed a positive and significant relationship between operational risk and risk attitude. Results from the regression analysis showed that operational risk and risk attitude significantly predicted 0.311 of organizational performance of financial institutions. The study recommends for improvement in operational risks among financial institutions and this would improve organizational performance more than risk attitude. The study further recommends updating and upgrading of internal processes, systems and people within the financial institutions