The role of risk management in the performance of an organization

Abstract

This study attempts to explain how risk management has an effect on the performance of an organization. The study was aimed at identifying the risks that are likely to occur, to examine the challenges faced in implementing the risk management strategies and suggestions on how to improve on an organization’s risk management strategies. The study was conducted at the main branch of UAP Insurance Uganda Limited Kampala, in which 19 employees and 7 customers of the organisation answered the questionnaire issued to them. The study was both qualitative and quantitative with most of the data gathered form questionnaires. This method was used because the research was sensitive in nature and the employees and customers preferred to give information through questionnaires. Other information was gathered from documentary sources such as reports. In the Insurance sector we that there is a growing number of the companies that are ensuring that the risks within the environment we live in are mitigated either in life or non-businesses thus becoming very competitive and it’s necessary to provide better quality services to gain a competitive advantage over the others. If the risk management is handled and managed by the right expertise then the overall performance of an organization will also grow and improve