scholarly journals EFFECT OF RISK MANAGEMENT PRACTICESON FINANCIAL PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA: A CASE OF JOMO KENYATTA FOUNDATION

2018 ◽  
Vol 3 (2) ◽  
pp. 19
Author(s):  
Emmy Chelangat Rop ◽  
Dr. Gladys Rotich
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Management Practices ◽  
Statistical Significance ◽  
Secondary Data ◽  
Unique Contribution ◽  
Reputational Risk ◽  
Strategic Risk ◽  
Operational Risks ◽  
Level Of Significance

Purpose: Risk if not well managed could lead to dissatisfactory performance of most organizations. Risk management should be at the central part of an organization’s operations by integrating risk management practices into Systems, processes, and culture of the entire organization. This study sought to establish the effect of Risk management practices on financial performance of Commercial state corporations in Kenya, a case of JKF. Methodology: The study adopted a descriptive study. The total population of the study was the employees of JKF. According to 2014/2015 Kenya National Audit office report, there are 119 employees of JKF. The study used secondary data which was collected from published reports and audited financial statements for five years for periods between 2011 and 2016. The collected data was analyzed using descriptive and inferential statistics. The study adopted regression analysis and statistical significance was measured at the 5% level of significance. R2 was used to determine strength of the relationship of the variables under study. Results: The study found significant relationships between financial performance of commercial state corporations and operational, financial and strategic risk management practices to an extent of 98.7%, 92.7% and 87.4% respectively. The findings indicate that there is a fairly strong positive relationship between reputational risk management practices and financial performance to an extent of 56.2%. Efficient management of operational risks leads to lower operating expense and increased profitability. Practices that lead to general reduction of liabilities would positively affect firm’s financial performance. Unique contribution to Theory, Practice and Policy: The study recommended that state corporations should comprehensively implement risk management good practices as outlined in their “MWONGOZO” guidelines. Further it was recommended that future studies should be carried out to include all state corporations based on data from a longer duration.

scholarly journals Analysis of Impacts of Operational Risk Management Practices on Banks’ Financial Performance: Study of Selected Commercial Banks in Nigeria

2020 ◽  
Vol 9 (1) ◽  
pp. 22-35
Author(s):  
Diekolola Oye
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Commercial Banks ◽  
Management Practices ◽  
Secondary Data ◽  
Operational Risk ◽  
Multiple Regression Model ◽  
Performance Study ◽  
Operational Risk Management ◽  
The Impact

Increase in losses borne by banks as a result of inadequate operational risk management practices and the adverse impact on banks’ financial performance has been a major concern to bank management and regulators. This study analysed the impact of operational risk management practices on the financial performance of commercial banks in Nigeria. 10-years (2008 - 2017) secondary data extracted from audited financial statements of selected commercial banks in Nigeria was used for the study. The data was analysed using the Linear Multiple Regression Model. The results showed that there is a positive relationship between operational risk management and the financial performance of banks. The findings revealed that sound operational risk management practices impact positively on the financial performance of banks. We, therefore, recommend that banks’ management should deploy adequate resources towards understanding operational risk to ensure sound operational risk management and improved financial performance of banks.

scholarly journals LIQUIDITY RISK MANAGEMENT AND FINANCIAL PERFORMANACE OF STATE OWNED ENTERPRISES IN KENYA

2021 ◽  
Vol 6 (2) ◽  
pp. 12-28
Author(s):  
Ambrose Jagongo ◽  
Emmy Rop
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Liquidity Risk ◽  
Field Research ◽  
Secondary Data ◽  
Policy Formulation ◽  
Unique Contribution ◽  
Risk Management Process ◽  
The Government ◽  
Desk Research

Purpose: The study sought to investigate the effect of liquidity risk management on financial performance of state owned enterprises in Kenya. Materials and Methods: The study adopted a desktop methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library Results: The results revealed that the studies done had conceptual framework gap. The study also found out that the study had geographical gap because they were not conducted in Kenya and also had different time scope Unique contribution to theory, practice and policy: The study will be significant to state owned enterprises, students, general public and State Corporations Advisory Committee as it will offer contributions from both a theoretical and practical perspective. Regulatory bodies such as SCAC as well as the government can utilize the findings from the study to improve on the framework for policy formulation and regulation. The study also recommends the Commercial and manufacturing state Corporations to adopt efficient strategies to improve financial performance through risk management process.

scholarly journals Effects of Selected Financial Management Practices on Financial Performance of Commercial Banks in Kenya

2021 ◽  
Vol 6 (1) ◽  
pp. 17-38
Author(s):  
Faith Njeri Harrison ◽  
Dr. Monica Muiru
Keyword(s):  
Risk Management ◽  
Capital Structure ◽  
Financial Performance ◽  
Financial Management ◽  
Commercial Banks ◽  
Management Practices ◽  
Management Practice ◽  
Secondary Data ◽  
Credit Risk Management ◽  
The Relationship

Purpose: The main aim of the study was to determine effects of selected financial management practices on financial performance of commercial banks in Kenya. The research was guided by the following specific objectives; to determine the influence of liquidity management, capital structure management, credit risk management and working capital management on the financial performance of commercial banks in Kenya.Methodology: The research employed a descriptive research design. Census method of sampling was employed, all the 43 commercial banks formed the study units. Both primary and secondary data were used. Secondary data was obtained from the audited annual financial reports of the commercial banks in Kenya while primary data was collected using questionnaire which was designed in form of Likert scale. Descriptive and inferential statistics were used, whereby correlation and regression were used to establish the strength of the relationship between the financial management practices and financial performance of the commercial banks. Data was presented inform of tables, mean and standard deviation. Correlation analysis was performed to examine the relationship between the financial management practices and financial performance of the commercial banks.Results: The study concludes that liquidity management had positive significant effect on the financial performance of commercial banks in Kenya.  Measuring liquidity risk is important to making sure that liquidity problems are identified in time.  The study concludes that capital structure management practice has positive significant effect on the financial performance of commercial banks in Kenya. On credit risk management practice, the research found strong positive significant on the financial performance of commercial banks in Kenya. Most of financial institutions have risk eliminating strategy in place, proper risk management. Finally, the study concludes that working capital management practice has positive significant on the financial performance of commercial banks in Kenya.Unique contribution to theory, policy and practice: The research recommends that banks management should make sure that they maintain substantial levels of liquidity, so as to maintain competitive performance. Commercial institution must have a feasible capital structure in place that addresses issues such, as flexibility where changes in the capital market should be well adapted to the capital structure.

scholarly journals BUSINESS RISK MANAGEMENT PRACTICES ADOPTED BY ENTREPRENEURS FOR BUSINESS SUCCESS IN DELTA STATE

2021 ◽  
pp. 1-7
Author(s):  
Samuel Ikelegbe ◽  
Romanus Udeh
Keyword(s):  
Risk Management ◽  
State Government ◽  
Management Practices ◽  
Management Practice ◽  
Business Management ◽  
Business Owners ◽  
Business Success ◽  
Business Risk ◽  
Level Of Significance ◽  
Structured Questionnaire

The study was a survey research; it focused on determining the extent entrepreneurs adopt risk management practices for business management practice in Delta State. The population of the study comprises of 860 business owners who are registered with the Ministry of Commerce and Industries in Delta State. The instrument for data collection was a structured questionnaire with 16 items. Data collected were analyzed using mean and Standard deviation. The null hypothesis was tested using ANOVA statistics at 0.05 level of significance. Findings from the investigation revealed that entrepreneurs in Delta State do not adopt business risk management practices in managing their businesses. It was recommended among others that the Delta State Government and Ministry of Commerce and Industries should sensitize business owners on business risk management practice to enhance business success.

scholarly journals Firm Size, Board Size, And Ownership Structure And Risk Management Disclosure

2019 ◽  
Vol 5 (2) ◽  
pp. 117-137 ◽  
Author(s):  
Dwi Pangestuti ◽  
Erika Takidah ◽  
Ratna Anggraini ZR
Keyword(s):  
Risk Management ◽  
Firm Size ◽  
Ownership Structure ◽  
Annual Report ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Analysis Method ◽  
Board Size ◽  
Level Of Significance

This research aims to examine the influence of firm size, board size, and ownership structure on risk management disclosure on syariah banking in Indonesia 2011-2014. This research uses secondary data which is the annual report of syariah banking. The sample was selected by purposive sampling which are 10 syariah banking qualified in this research. This research conducts multiple linear regression analysis method to examine the hypothesis in the level of significance 5%. The result of this research showed that firm size, board size and public ownership have influence on risk management disclosure. Meanwhile, the institutional ownership didn’t have a significant impact on risk management disclosure

Management Accounting And Risk Management Practices In Financial Institutions

2012 ◽  
Author(s):  
Siti Zaleha Abdul Rasid ◽  
Abdul Rahim Abdul Rahman
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Management Practices ◽  
Management Accounting ◽  
Enterprise Risk Management ◽  
Chief Financial Officers ◽  
Operational Risks ◽  
Enterprise Risk ◽  
Budgetary Control ◽  
Contemporary Management

Tujuan kertas kerja ini adalah untuk melaporkan hasil kajian terhadap amalan perakaunan pengurusan dan amalan pengurusan risiko di institusi kewangan. Data dikutip menggunakan borang soal selidik yang dihantar kepada 106 institusi kewangan yang tersenarai di dalam website Bank Negara Malaysia, di mana Ketua Pegawai Kewangan atau pegawai terkanan di jabatan kewangan institusi–institusi tersebut dilantik sebagai responden kajian. Analisis amalan perakaunan pengurusan berdasarkan kerangka IFAC (1998) menunjukkan bahawa amalan yang lazim diguna pakai adalah amalan di peringkat pertama, diikuti dengan amalan selepas era 1995. Dapatan ini menunjukkan bahawa amalan perakaunan pengurusan tradisional masih diguna pakai secara meluas oleh institutsi-institusi kewangan di Malaysia walapun amalan–amalan kontemporari (peringkat ke 4 dan ke atas) telah diperkenalkan. Bagi amalan pengurusan risiko, kebanyakan institusi telah melaksanakan kerangka Enterprise Risk Management (ERM) secara menyeluruh atau sebahagian. Amalan perakaunan pengurusan berkaitan penyata kewangan dan analisis nisbah dianggap sebagai memberikan sumbangan utama kepada pengurusan risiko. Kawalan belanjawan, belanjawan dan pengurusan strategik juga dianggap penting dalam pengurusan risiko operasi. Kata kunci: Perakaunan pengurusan; pengurusan risiko; institusi kewangan The aim of this paper is to report the results of a study on management accounting and risk management practices in financial institutions. The research method involved administering a questionnaire to 106 financial institutions listed on the Malaysian Central Bank’s website and the respondents were the chief financial officers (CFO) or the most senior positions in the finance department of the institutions. Based on the IFAC’s (1998) framework, it was found that the most widely practiced were the management accounting practices at Stage 1, followed by practices of Post 1995. This finding shows that despite the emergence of contemporary management accounting practices (Stage 4 onwards), traditional management accounting that focuses on financial performance and budgetary control is still widely practiced by financial institutions in Malaysia. As for the risk management practices, most of the firms have either implemented a complete or partial Enterprise Risk Management (ERM) framework. The findings from the survey showed that management accounting practices related to financial statement and ratio analysis were perceived to contribute most towards risk management. Budgetary control, budgeting and strategic planning were also perceived to be important in managing operational risks. Key words: Management accounting; risk management; financial institutions

An Assessment of Risk Management Practices of SME Taxpayers in Malawi and their Impact on Tax Compliance

2018 ◽  
Vol 4 (4) ◽  
pp. 7-17 ◽  
Author(s):  
Stella Binauli Nanthuru ◽  
Liu Pingfeng ◽  
Nie Guihua ◽  
Victoria Lucas Mkonya
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Structural Equation ◽  
Management Practices ◽  
Risk Mitigation ◽  
Tax Compliance ◽  
Value Added ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling

This study assesses understanding of Risk, and extent of risk management practices in Small and Medium Enterprise (SME) taxpayers in Malawi, subsequently, investigates their relationship with financial performance and tax compliance. The study focuses on unlimited business sectors of SME taxpayers which drew a representation of our sample of 324 SMEs, using Partial Least Square-Structural Equation Modeling (PLS-SEM) to analyze and test hypotheses. Results indicate that half of the SME taxpayers are aware of risks, but only 23% of respondents underwent any training on risk management. 90% of respondents revealed that tax rates are the most significant business constraint; value-added tax (VAT) being the most challenging tax to file. Most respondents identified risks through experience, with risk management practices centering on Chief Executive Officers. Empirical evidence on Path analysis and bootstrapping results established a significant relationship between understanding risks, risk management practices, financial performance and Tax compliance, which is positive, signaling a roadmap for risk mitigation if tax administration is to widen its SME tax net.

scholarly journals The contribution of loan management on the financial performance of umurenge savings and credits cooperatives in rwanda

2020 ◽  
Vol 10 (1) ◽  
pp. 64-86
Author(s):  
Alphonse Nsengiyumva ◽  
Jean Bosco Harelimana
Keyword(s):  
Financial Performance ◽  
Quantitative Methods ◽  
Management Practices ◽  
Positive Impact ◽  
Secondary Data ◽  
Simple Random Sampling ◽  
Total Sample ◽  
Qualitative And Quantitative Methods ◽  
Credit Cooperatives ◽  
Descriptive Survey

The study analyzed the contribution of loan management on the financial performance of Umurenge Savings and Credit Cooperatives in Rwanda. The study adopted the use of descriptive survey using both qualitative and quantitative methods for a total sample size of 78 clients who have received more than two times the loan. Purposive and simple random sampling was used for this purpose. Primary and secondary data were collected and then analyzed. The study found that loan management determinants used such as membership enrolment, client appraisal, credit risk control and collection policy impact on financial performance respectively at 23,9%; 24,1%; 39,2 % ; 28,4%.Loan management practices have a high influence on the SACCO’s financial performance during the five years.The correlation results imply that suitable loan management in a saving and credit institution has a positive impact on financial sustainability and profitability and on financial efficiency and productivity as they move in the same direction (R=0.980).

scholarly journals Effects of Underwriting and Claims Management on Performance of Property and Casualty Insurance Companies in East Africa

2017 ◽  
Vol 13 (13) ◽  
pp. 358
Author(s):  
Caren B. Angima ◽  
Mirie Mwangi
Keyword(s):  
Financial Performance ◽  
East Africa ◽  
Management Practices ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Insurance Companies ◽  
Insurance Sector ◽  
General Insurance ◽  
Claims Management

The insurance sector plays an important role in service economy of any country by underwriting of risks inherent in most sectors thus providing a sense of peace to most economic entities. Performance of general insurance companies is expected to be related to various factors, including optimal underwriting and prompt and efficient claims management functions. This study investigated the effect of underwriting and claims management practices on the performance of general insurance firms in East Africa. The study employed multiple linear regression analysis using primary and secondary data collected from 82 general insurers in Kenya, Uganda and Tanzania. The findings show that there is a significant positive relationship between underwriting and claims management practices employed by the firms and non-financial performance, but the relationship with financial performance was insignificant. The implication is that a profit oriented insurance firm should embrace a claims function that is closely related with the underwriting and pricing of the firm’s portfolio for meaningful results. It is recommended that general insurance companies focus on other important factors besides underwriting and claims management order to improve overall financial performance.

scholarly journals THE EFFECT OF OPERATIONAL RISK MANAGEMENT PRACTICES ON THE FINANCIAL PERFORMANCE IN COMMERCIAL BANKS IN TANZANIA

2016 ◽  
Vol 1 (1) ◽  
pp. 29
Author(s):  
Kerongo Maatwa Meshack ◽  
Rose Wairimu Mwaura
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Performance ◽  
Commercial Banks ◽  
Management Practices ◽  
Operational Risk ◽  
Operational Efficiency ◽  
Primary Data ◽  
Operational Risk Management ◽  
Insolvency Risk

Purpose: The purpose of the study was to determine the effect of operational risk management practices on the financial performance in commercial banks in TanzaniaMethodology: The research problem was studied by use of a descriptive research design. The population of the study consisted of all commercial banks in Tanzania. The study used the sample size of 34 commercial banks in Tanzania. Therefore all the commercial banks participated in equally. Questionnaires were the primary data collection tool in this study. The data gathered from the respondents shall be analyzed and presented using descriptive statistics.Results: The study found that the three independent variables in the study credit risk, Insolvency risk and Operational efficiency influenced the financial performance for the period under study. Credit risk Insolvency risk   and Operational efficiency influenced commercial banks financial performance for the period of study.Unique contribution to theory, practice and policy: This study therefore recommends that the commercial banks should handle their operations appropriately as the changes in the factors like Insolvency and Credit risk bring about an effect on the profitability of commercial banks hence affecting their financial performance

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