Abstract

The purpose of the study was to examine the effect of risk management on the financial performance of Centenary
Bank Masindi Branch, Masindi District. The specific objectives were to find out the determinants of financial
performance in Centenary Bank Masindi branch, to establish risk management practices at the centenary bank, and
to establish the relationship between risk management and Organization performance. From the findings of the
study, the determinants of financial performance at centenary bank Masindi branch were rate of return on
investments, liquidity determines, business expansion profitability, and quality service delivery respectively. Risk
management practices were adequate risk management process, the tone from the top, strategic planning, industrial
visibility communication, clear risk management policies, continuous monitoring, and, stakeholder involvement.
Furthermore, the findings of the study revealed that there is a positive relationship between risk management and
the performance of Centenary Bank Kabalagala Branch of 81% based on the average index of 4.05, and correlation
analysis also revealed that there is a strong positive linear relationship between risk management and financial
performance of 0.85. This means that as risk management improves, the financial performance of the Centenary
Bank Masindi branch improves by 85%. The study recommended that the management improvement on the quality
of service delivery is a core determinant of financial performance since it was accepted with the least percentage, the
management should greatly improve on stakeholder involvement as this risk management practice was agreed with
the least percentage in the study and that management should employ more risk management practices as the
findings of the study revealed that risk management improves the performance of centenary bank Masindi branch