Masters of Business Administration (MBA)

URI for this collectionhttps://rps.wku.edu.et/handle/987654321/110

Browse

Filters

20252

Settings

Author: search.filters.author.MUZEMIL BEHJA

Search Results

Now showing 1 - 2 of 2
  • No Thumbnail Available
    Item
    EFFECTS OF RISK MANAGEMENT PRACTICE ON FINANCIAL PERFORMANCE: THE CASE OF MICRO FINANCE INSTITUTIONS IN GURAGHE ZONE
    (wolkite universty, 2025-08) MUZEMIL BEHJA
    This study investigates the relationship between risk management practices and the financial performance of microfinance institutions operating in the Guraghe Zone, Ethiopia. Employing a mixed-methods approach, the study combines quantitative analysis using statistical software, Eviews 10 with qualitative insights from in-depth interviews. The quantitative component analyzes panel data from 2015 to 2024 for a sample of five microfinance institutions. Specifically, it examines the relationship between key risk management indicators—Portfolio at Risk Ratio, Loan Loss Provision Ratio, Fraud Incidents, and Information Technology Security Expenditure—and a primary indicator of financial performance, Return on Assets. Panel least squares regression with fixed effects was used to assess these relationships. The qualitative component involved in-depth interviews with risk management personnel from the same five microfinance institutions. These interviews explored the microfinance institutions' credit risk management practices, operational risk management frameworks, and the main challenges encountered in implementing effective risk management strategies. The quantitative analysis revealed no statistically significant direct linear relationships between the measured risk management indicators and Return on Assets. While descriptive statistics and correlations provided initial insights into the variables and their associations, the regression results suggest that, within the employed model, the direct impact of these specific risk measures on profitability was not statistically discernible. The qualitative findings underscore the importance of comprehensive credit risk management practices, including thorough loan assessment, varied collateral approaches, and active loan monitoring. Furthermore, the microfinance institutions highlighted their operational risk management efforts, focusing on fraud prevention and Information Technology security. The study identified key challenges facing these microfinance institutions, such as limited access to reliable credit information and vulnerability to external shocks. The study recommends that Ethiopian microfinance institutions enhance credit risk assessment, strategically invest in operational risk management, collaborate for information sharing, diversify financial performance strategies, and further investigate liquidity risk management
  • No Thumbnail Available
    Item
    EFFECTS OF RISK MANAGEMENT PRACTICE ON FINANCIAL PERFORMANCE: THE CASE OF MICRO FINANCE INSTITUTIONS IN GURAGHE ZONE
    (wolkite universty, 2025-08) MUZEMIL BEHJA
    This study investigates the relationship between risk management practices and the financial performance of microfinance institutions operating in the Guraghe Zone, Ethiopia. Employing a mixed-methods approach, the study combines quantitative analysis using statistical software, Eviews 10 with qualitative insights from in-depth interviews. The quantitative component analyzes panel data from 2015 to 2024 for a sample of five microfinance institutions. Specifically, it examines the relationship between key risk management indicators—Portfolio at Risk Ratio, Loan Loss Provision Ratio, Fraud Incidents, and Information Technology Security Expenditure—and a primary indicator of financial performance, Return on Assets. Panel least squares regression with fixed effects was used to assess these relationships. The qualitative component involved in-depth interviews with risk management personnel from the same five microfinance institutions. These interviews explored the microfinance institutions' credit risk management practices, operational risk management frameworks, and the main challenges encountered in implementing effective risk management strategies. The quantitative analysis revealed no statistically significant direct linear relationships between the measured risk management indicators and Return on Assets. While descriptive statistics and correlations provided initial insights into the variables and their associations, the regression results suggest that, within the employed model, the direct impact of these specific risk measures on profitability was not statistically discernible. The qualitative findings underscore the importance of comprehensive credit risk management practices, including thorough loan assessment, varied collateral approaches, and active loan monitoring. Furthermore, the microfinance institutions highlighted their operational risk management efforts, focusing on fraud prevention and Information Technology security. The study identified key challenges facing these microfinance institutions, such as limited access to reliable credit information and vulnerability to external shocks. The study recommends that Ethiopian microfinance institutions enhance credit risk assessment, strategically invest in operational risk management, collaborate for information sharing, diversify financial performance strategies, and further investigate liquidity risk management.