| dc.description.abstract | This report aimed at examining relationship between operational risk practices and fraud management among commercial banks in Uganda. The study was premised on three objectives; to establish the different operational risk practices used by Commercial bank in Uganda, to examine the fraud management strategies used by Commercial banks in Uganda, to establish the relationship between operational risk practices and fraud management among commercial banks in Uganda.
The study employed a cross-sectional and descriptive research with a mixed study approach which involved collecting numerical data from 86 respondents and interviewing 5 key informants. Quantitative Data was analyzed using the statistical package for social science (SSPS Version 27) while qualitative Data was analyzed using Atlas ti (version 9).
The study found that Commercial banks exhibits both strengths and weaknesses across its operational risk practices and fraud management strategies. In Operational Risk Identification, the bank excels at identifying risks related to people and internal systems, with a high mean score of 4.67 (SD = 0.38), and is notably effective in using key risk indicator tools, scoring 3.87 (SD = 1.04). However, it falls short in utilizing risk mapping and self-assessment tools, with low mean scores of 2.36 (SD = 1.27) and 2.58 (SD = 1.50), respectively. For Operational Risk Assessment and Analysis, the bank demonstrates strong use of qualitative methods and prioritization of risks, with mean scores of 4.00 (SD = 0.82) and 4.12 (SD = 1.42), though its contingency planning and quantitative assessment methods are weaker, reflected by scores of 2.83 (SD = 1.47) and 3.27 (SD = 1.04). In Fraud Management, the bank effectively conducts regular fraud risk assessments, scoring a mean of 4.21 (SD = 1.03), and employs anti-fraud technologies well, with a high mean of 4.67 (SD = 1.26). Conversely, its fraud management policies and procedures are less effective, with a mean score of 2.86 (SD = 0.79), and while its fraud detection mechanisms are robust, its whistleblowing mechanisms are less effective, scoring 2.87 (SD = 1.35).
Recommendations were; Commercial banks should enhance fraud and operational risk management by updating policies, empowering employees, and setting up confidential fraud reporting systems. Strengthening risk evaluation and investing in robust risk management committees will help minimize operational losses and ensure regulatory compliance. Further research should focus on analyzing operational risk management and fraud practices across various branches, other banks and conducting longitudinal studies for a deeper understanding. | en_US |
