FINANCIAL RISK CONTROL AND FINANCIAL PERFORMANCE OF PRIVATE PRIMARY SCHOOLS IN KISII COUNTY, KENYA
Abstract
The aim of the study was to evaluate the effect of financial risk control on financial performance of private primary schools in Kisii County. The objectives of the study were to investigate the effect of operational risk control, to evaluate the effect of cash flow risk controls, to evaluate the effect of credit risk control and to analyze the effect of marketing risk control on financial performance of profit making in private primary schools in Kisii County, Kenya. This was conducted using a descriptive survey research. The study targeted the administrators in the 177 private primary schools. A stratified random sampling was used to select the schools that participated in the study. Data was collected using structured questionnaires. The data collected was analyzed using the statistical package for social sciences (SPSS) software, IMB 22 version and presented using cross tabulation charts and graphs, tables, percentages, and frequencies. The data was presented in form of tables and models. Multiple linear regression results using unstandardized beta coefficients showed that there exists a positive and significant effect of operational risks control, cash flow risk control, credit risk control and market risk control on financial performance in private primary schools of Kisii County, Kenya. The study concluded that that financial risk control has a significant positive effect on financial Performance in private primary schools of Kisii County, Kenya as it accounted for 70.3% of its variation. The study recommended that regular audits should be implemented to assess the effectiveness of internal control systems and identify any gaps or areas for improvement. Private schools should consistently maintain a cash reserve for unforeseen expenses to bolster financial preparedness. The study recommended that private schools should have clear and proactive procedures for managing late payments, such as timely reminders and consequences, are crucial for maintaining financial discipline and reducing bad debts.
Key Words: Operational Risk Control, Cash Flow Risk, Credit Risk Control, Market Risk Control
CITATION: Kiricia, S. K., Otinga, H., & Miroga, J. (2024). Financial risk control and financial performance of private primary schools in Kisii County, Kenya. The Strategic Journal of Business & Change Management, 11 (4), 11 – 33. http://dx.doi.Org/10.61426/Sjbcm.v11i4.3066
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i4.3066
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