ABSTRACT
The study set out to establish the risks
facing Agricultural Finance Corporation, determine the risk management
strategies deployed to counter these risks and assess the effectiveness
of these strategies in meeting the overall corporate objectives. This
study set out to establish the relationship between risk management and
the performance of the
Agricultural Finance Corporation.
The study involved the analysis of
credit performance indicators for the period 2010 to 2012. A trend
analysis was established, on the basis of which a descriptive analysis
was conducted to determine the impact of implementing risk management
strategies on the performance of the Agricultural Finance Corporation.
An overall analysis showed that the
Corporation is significantly affected by external factors, including
political interference and government policy but that internal factors
are also contributing to the deteriorating performance of its loan book.
The analysis shows that following the adoption of risk management in
its lending operations, Agricultural Finance Corporation is realizing an
improvement in the performance of its loan portfolio.