The Impact of Enterprise Risk Management Knowledge on the Non-Financial Performance of Zimbabwean Banks.

Abstract

Enterprise Risk Management (ERM) knowledge is the cradle of banking industry non-financial performance (NFP) which determine proper risk culture, appetite and tolerance. It motivates the development of sustainable structure determinants that align with banking operations to reap positive results from it. This research seeks to examine the impact of ERM knowledge on the NFP of Zimbabwean banks. The study objectives were to determine the ERM structure determinants in Zimbabwean banks, assess the effectiveness of reliable integrated risk governance on banking industry NFPs and determine the challenges that makes it difficult to adopt ERM cycle in Zimbabwean banks. The mixed research methods study which was done under an explanatory and descriptive research designs used cluster and purposive sampling techniques and a census was determined the sample size. The obtained qualitative data was analyzed using thematic analysis in NVivo 15.2.1 and the quantitative data was analyzed using Pearson Product Moment Test Correlation Coefficient (PMMTCC) in Statistical Package for Social Sciences (SPSS) Version 31 (117. It is a good tool to reduce to conform the data chatbot and transcript to the qualitative research international standard operating procedures. The study results shows that the ERM structure determinants application is still a piecemeal process and some steps are flawed which is pre-emptying the capacity of the banking industry to achieve effective NFPs. Resource scarcity and regulatory churn are significant stumbling blocks against the success of banks in adopting ERM cycle and consistently reap results from it. The study concludes that, the ERM knowledge is a vital organ in spearheading effective NFP in the banking industry since it aligns banking culture to risk culture. The study recommends that; there should be effective ERM knowledge to minimize costly loopholes and gaps that result in banking losses.