Credit risk management and financial performance of SACCOS:

Abstract

This study focused on assessing the effect of credit risk management through risk identification, risk assessment and risk control on financial performance. The study applied a cross-sectional research design and a quantitative approach. Data was collected from a target population of 90 with accessible unit of inquiry being 73 respondents consisting of SACCO officials of positions. Data was collected using a closed ended questionnaire and analyzed using the statistical package for social sciences from which, frequency tables, descriptive statistics, reliability, validity, correlation and regression results were obtained. The study findings revealed that there is a positive and significant effect of risk identification and financial performance, risk assessment and financial performance, risk control and financial performance. The study therefore recommends that to improve on financial performance, aspects of risk identification, risk assessment and risk control should be put on the forefront.