CORPORATE RISK MANAGEMENT PRACTICES AND ORGANIZATIONAL INTERNAL EFFICIENCY IN SELECTED PUBLIC UNIVERSITIES IN NAIROBI METROPOLITAN REGION, KENYA
Abstract
The purpose of this study was to investigate the effect of corporate risk management practices on organizational internal efficiency. The study was hinged on the enterprise risk theory and stakeholders' theory and adopted an explanatory research design. The target population of the study was 270 senior and middle management administrators from four (4) public universities in Nairobi Metropolitan Region. The study used purposive, systematic and simple random sampling techniques to select 90 respondents for the study. Questionnaires, interview schedule and document analysis were used to collect quantitative and qualitative data. The researcher used content experts to establish the validity of the instruments while Cronbach alpha coefficient was used to establish the reliability of the questionnaires whose threshold was at 0.79. Quantitative data was analyzed using descriptive statistics, namely; percentages, mean and standard deviation while the regression analysis was used as the inferential statistics to answer the research questions. Qualitative data was analyzed thematically using Nvivo software. The study established that risk identification practices namely; internal factors, external factors, types of risks and risk knowledge have statistically significant effect on organizational internal efficiency. Further, the study revealed that risk assessment practices such as risk ranking and prioritized risk significantly affect organizational internal efficiency. Moreover, the study showed that risk treatment practices, namely; risk control techniques and contingency plans made significant contribution on organizational internal efficiency. Finally, the findings showed that risk monitoring practices, namely; proper documentation, risk management policy and internal audit had statistically significant effect on organizational internal efficiency.
Key Words: Risk Identification, Risk Assessment, Risk Treatment, Monitoring Practices
CITATION: Mwaniki, A., & Njoroge, J. (2022). Corporate risk management practices and organizational internal efficiency in selected public universities in Nairobi Metropolitan Region, Kenya. The Strategic Journal of Business & Change Management, 9 (4), 226 - 254
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2406
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