Heat olive oil in a large deep skillet or Dutch oven over medium-high heat.
Add the sliced Italian sausage and cook, stirring occasionally, until browned and cooked through, about 5-7 minutes. Remove sausage from the pan and set aside.
In the same pan, add the diced onion and sauté until softened, about 3 minutes.
Add the minced garlic and cook for 30 seconds until fragrant.
Add the sliced red and green bell peppers and cook until slightly softened, about 4 minutes.
Stir in the rinsed rice, dried oregano, smoked paprika, and crushed red pepper flakes. Cook for 1-2 minutes, stirring frequently, to toast the rice lightly.
Pour in the chicken broth and stir to combine. Season with salt and black pepper to taste.
Return the cooked sausage to the pan and bring the mixture to a boil.
Reduce heat to low, cover the pan, and simmer for 18-20 minutes, or until the rice is tender and liquid is absorbed.
Remove from heat and let it sit covered for 5 minutes.
Fluff the rice with a fork, garnish with chopped fresh parsley, and serve hot.