Towards an Operational Management Risk Taming Model for Micro-Insurance Organisations in Zimbabwe

This monograph is based on a study that sought to assess the taming operational management risks model in micro-insurance organisations based on a study of SamChi Micro-Insurance. The study also sought to explore the plausible sources of operational risks associated with SamChi MicroInsurance operations, assess the operational risk management strategies currently being employed at SamChi Micro-Insurance, establish the plausible benefits of effective operational risk management to micro-insurance companies and to design a framework that can be used to effectively manage operational risks at SamChi Micro-Insurance and other similar microinsurance organisations. A sample size of 92 respondents that consisted of the managerial personnel and employees of SamChi Micro-Insurance located within the city of Harare, Zimbabwe was used for the study and all the 89 returned the questionnaires that were administered to them that resulted in the study attaining 97% response rate. Quantitative research methods were employed in the study utilising a probability stratified random sampling technique. A descriptive research design was used. Data analysis was done using descriptive tests using SPSS 25. Data were also entered into the SPSS for descriptive analysis. The researcher used the SPSS 25 software to conduct statistical analysis of the data that was presented. Reliability tests and correlation were all carried out using the tool. The study concluded that the major sources of operational risk for SamChi Micro-Insurance are a lack of clearly defined standard operating procedures, inadequate staff training, poor communication between departments, outdated technology systems, and insufficient internal controls. These operational risks significantly impact SamChi's vulnerabilities if not properly addressed. The study also concluded that while SamChi's existing operational risk management strategies around risk management training, ongoing risk identification and monitoring, clearly outlined roles and responsibilities, and regular control evaluations are generally aligned with leading practices, there is still room for improvement. In particular, the study found that SamChi's underwriting risk oversight and fraud prevention strategies could be strengthened.