Institutional pressures and risk governance: evidence from Uganda’s financial institutions

Abstract

PurposeThe purpose of this paper is twofold: first, to examine the impact of institutional pressures on risk governance, and second, to examine the contribution of the specific elements of institutional pressures on risk governance in financial institutions (FIs) in Uganda.Design/methodology/approachThe study adopted a cross-sectional design where data were collected through a questionnaire survey of 112 FIs. The data were analyzed using the Statistical Package for Social Scientists (SPSS).FindingsThe results indicate that institutional pressures are significantly associated with risk governance. The study also found that coercive pressures and normative pressures have a positive and significant effect on risk governance, while mimetic pressures do not have a significant effect.Originality/valueThis study offers initial evidence on the association between institutional pressures and risk governance using evidence from Uganda’s FIs. The results also show the impact of the individual elements of institutional pressure on risk governance in FIs. The study also further adds theoretical foundations to the risk governance literature.