Abstract:
This study aimed at examining the effect of Enterprise Risk Management (ERM) on Value
for money (VFM) in Tanzania, a case of National Microfinance Bank in Dodoma City.
Specific objectives of this study focused on assessing the effectiveness of ERM in
National Microfinance Bank, assessing the effectiveness of VFM in National
Microfinance Bank, and examining the relationship of ERM and VFM in National
Microfinance Bank. This study employed descriptive research design and quantitative
research approach. The sample size was 92 bank officers. This study used simple random
sampling technique in selection of respondents. The study only collects primary data by
using questionnaire methods. Descriptive statistics were used in analyzing quantitative
data. The first objective reveals positive perceptions in areas such as risk identification,
training provision, and accountability promotion. Effective communication emerged as a
critical factor in building trust and credibility among stakeholders, although there is a need
for improvement in the bank’s adaptability to changing market conditions. The second
objective indicates positive customer sentiments overall but highlighting mixed feelings
and potential dissatisfaction regarding interest rates on loans. The third objective reveals
crucial connections between risk assessment and mitigation, emphasizing the importance
of an informed workforce, and underscoring the positive impact of transparent
communication on customer trust and satisfaction. The study recommends that National
Microfinance Bank should build upon its effective ERM system by addressing the specific
concerns of respondents who expressed neutrality or disagreement, and should also focus
on improving competitive savings account rates and fee transparency to enhance overall
customer satisfaction and loyalty.
