A Dissertation Submitted to Mzumbe University in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration in Corporate Management (MBA-CM) of Mzumbe University
A study on assessment of impact of operational risk on growth and survival of Exim Bank (T) Ltd was done at Exim Bank Corporate office and its Dar e salaam branches whereby 120 respondents participated.
The general objective was find how effective operational risk management practices are to Exim Bank and whether these practices can safeguard growth and survival of the bank. The specific objectives were to assess how effective are operational risk management practices implemented by the bank, to determine how operational risk affects growth and survival of the bank and to examine the impact of operational risk on growth and survival of the bank.
Both theoretical and empirical literatures were reviewed. Research design used was case study design and data collection methods and instruments used were documentary review and interviews and data collection instruments used were questionnaires, schedules, and interview questions. Analysis of data was done based on research objectives.
The findings of the study indicated that even though operational risk is quite new within Exim Bank, its effects are being realized. It also reveals that Exim bank is realizing the significance and importance of operational risk management as a tool for growth and survival where allocation of requisite resources for it is given first priority. Some recommendations were made and prominent amongst them were that Exim bank must link their operational risk management activities to their business objectives and identify the effects of operational risk for its growth. Also operational risk management should be the responsibility of all staff including the Board of Directors and management and as such awareness must be created on the need to identify, evaluate, monitor, control and report operational risk issues in accordance with the strategies and policies of Exim bank in ensuring the adequacy of capital and human resources against operational risk.