| dc.description.abstract | Previous research shows internal controls are particularly crucial in the banking sector compared to other business organizations, as this environment is highly susceptible to risks that need to be managed to ensure optimal performance and profitability. Motivated by increasing leverage ratio, at I&M Bank Uganda indicating challenges in managing risks. The study examined the internal control activities, their contribution to risk management, assessing challenges to effective implementation, and identifying strategies for successful implementation. A cross-sectional and descriptive research design with a quantitative approach was used, collecting data from 88 I&M Bank staff via a survey questionnaire. The study on I&M Bank's internal controls highlighted several strengths, including effective segregation of duties and proper transaction authorization that helped prevent fraud. However, it also identified weaknesses, such as inadequate periodic review of controls and security incident reporting protocols. The internal control framework was generally effective in risk identification and fraud prevention but fell short in regulatory compliance. Challenges like limited financial resources, resistance to new technologies, communication issues, and lack of leadership support hindered effective risk management. To address these issues, the study recommended increased budget allocations for risk management, hiring additional staff, providing regular training, improving communication protocols, and engaging employees in control design and implementation. Strengthening training programs is also suggested to reduce resistance to change and enhance risk management understanding. Overall, the study emphasizes the need for robust internal controls and offers actionable recommendations to improve I&M Bank’s risk management capabilities, benefiting both the bank and other financial institutions aiming to enhance their internal control frameworks.
Key words : Internal Controls, Risk Management, Commercial Banks, contribution of internal controls and and internal controls Challenges | en_US |
