Purpose: To determine the effect of Loan Risk Management Strategies on Financial Performance of Deposit Taking SACCO Societies in the Lake Region Economic. Design/Methodology/Approach: A mixed-methods research design that was descriptive and correlational was used. The collection of data was done using structured questionnaires administered to key institutional personnel (72 stakeholders from 36 SACCOs) and from financial statements on return on assets. The analysis consisted of descriptive and inferential statistics. Findings: The descriptive results revealed that loan risk management (grand mean 3.65) were moderately practiced. Financial performance had a strong positive correlation with loan risk management strategies(r = 0.715, p < 0.05). This led to rejection of null hypothesis. Implications/Originality/Value: The management of SACCO should strengthen risk assessment by employing digital credit scoring systems and alternative data, institutionalizing regular portfolio reviews and early warning systems, and continuous training of staff in risk analytics.
Sabwami et al. (Tue,) studied this question.
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