Ethics Policy and Risk Mitigation in Commercial Banks in Uganda
Mande W M (2014) Ethics Policy and Risk Mitigation in Commercial Banks in Uganda. Nkumba Business Journal. ISSN 1564-068X. Volume 13. Entebbe. Nkumba University
28 Pages Posted: 25 Jan 2016 Last revised: 26 Jan 2016
Date Written: October 24, 2014
The current study set out to explore the contribution of ethics policy on risk mitigation. The study has revealed that commercial banks in Uganda have risks in areas of credit, liquidity, market, operations, compliance, taxation, and reputations. The results further revealed that ethics policy had a significant relationship with compliance [r (48) = .318, p<0.05]. Similarly compliance also significantly related to risk mitigation [r (48) =.437, p<0.01]. There was also a strong relationship between ethics policy and risk mitigation [r (48) =.380, p<0.01]. The causal effect of ethics policy on risk mitigation came out as 51%. In order to have effective risk mitigation, ethics training was proposed. A simulation should that if bank employees were given ethics training, mitigating risks in the commercial bank would improve up to 70%.
Keywords: Ethics policy, risk mitigation, commercial banks, Uganda
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