THE RELATIONSHIP BETWEEN RISK ASSESSMENT AND FINANCIAL PERFORMANCE OF MBALE MUNICIPAL COUNCIL IN UGANDA. A CROSS-SECTIONAL STUDY.

FATINAH LUNYOLO; Patience Tugume

doi:10.70572/agp.v2i5.97

Authors

Fatinah Lunyolo School of Graduate Studies and Research, Team University.
Dr. Patience Tugume School of Graduate Studies and Research, Team University.

DOI:

https://doi.org/10.70572/agp.v2i5.97

Keywords:

Risk Assessment, Financial Performance, Mbale Municipal Council, Uganda

Abstract

Background

Risk assessment involves identifying, analyzing, and prioritizing potential financial and operational threats. The study aimed to assess the relationship between risk assessment and the financial performance of Mbale Municipal Council, Mbale District.

Methodology

The study used a descriptive cross-sectional design, specifically focusing on correlation analysis of study data. A sample size of 169 was estimated from a population of 300 study units. Data was collected through questionnaires and analyzed with the aid of SPSS.

Results

The Majority of respondents (53.9%) were male, while 46.1% were female. 45.4% belonged to the 36 – 60 years age bracket and were the majority, followed by those in the age bracket of 18 – 35 years. The least participation was observed among the older persons of 60 years and above. The study found that risk management has a significant statistical effect on financial performance (Beta =.349; sig <.05). Generally, risk management accounted for a 50.7 percent change in the financial performance of Mbale Municipal Council.

Conclusion

Risk management significantly affects the financial performance of local governments. Most importantly, local governments that have established financial control desks, with specific officers to analyze desks are likely to register improvements in their financial performance.

Recommendation

There is a need to emphasize risk management practices at MMC, especially through appropriate risk assessment, forecasts, and analysis by financial controllers.

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