The effect of risk management on organisational performance: a case study of Kansai Plascon Uganda limited

Abstract

This study was conducted in Kampala, Uganda by interviewing 45 Staff members working at Kansai Plascon Uganda Limited. The objectives of the study were to document risk management practices in Kansai Plascon Uganda limited, establish the factors affecting risk management in Kansai Plascon Uganda limited and determine the effect of risk management on performance of Kansai Plascon Uganda limited. The study adopted a cross-sectional survey design and collected data from 45 employees that were selected using simple random sampling technique. The study findings revealed that; majority of respondents were in the age bracket between 26-30 years, 45% of respondents had working experience of more than 5 years but less than nine years, 22.5% of the respondents were females and then 77.5% of the majorities were males and those with a degree were represented by 60%. The chi-square correlation results indicated a significant relationship between organizational performance and risk identification (pearson chi-square value= 4.4661, p-value=0.035). The study concluded that risk identification is a key predictor of organizational performance. The study recommended that the management of Kansai Plascon Uganda Limited should find other ways of managing risks to avoid losses, be more effective when carrying out risk assessment, find other better ways of increasing profitability, develop all the employees in form of training them to enable them manage the organizational risks effectively and clearly state their objectives, required activities to be performed, areas of improvement, budget, timeframe and relevant steps to be undertaken in order to achieve their goals and objectives in order to manage the financial risks.