Investors in Uganda have been advised to always include risk management in their business planning as it is crucial in corporate strategy and decision making.
Uganda Investment Authority (UIA) Chief Internal Auditor John Kyamakya Bwambale, while speaking at a training session of the UIA Business Development staff, noted that “the ultimate aim of risk management is to inform and provides measures for effective decision-making”.
Bwambale says risk management can be properly addressed with the introduction of a framework that systematically approaches and clarifies governance while determining accountability for risk management.
Effective risk management involves identification, assessment, and prioritization of risks or uncertainties followed up by minimizing, monitoring and controlling the impact of risk realities or enhancing the opportunity potential by applying coordinated and economical resources, says Bwambale, according to a statement on the UIA website.
“Risk management is the role of the board and or the investor; the board delegates this role to management… management appoints a risk officer or department. All departments, project and unit heads are risk owners; therefore, all staff have a role in risk management,” Bwambale is quoted as saying.
The UIA auditor urged investors to apply techniques and tools that include brainstorming during which they can assess the risks that could impact their businesses.
Other techniques he mentioned include assessing strengths, weaknesses, opportunities and threats, maintaining and updating a risk register, risk data quality assessment, tracking risks and holding meetings.