Tag Archives: Risk Assessment

Internal Control and Financial Performance of Hospitality Organisations in Rivers State (Published)

In the recent past, a number of organisations across the world failed irrespective of internal controls. This has raised concerns about the relevance and influence of internal control, especially as it affects the financial performance of an organisation. The main objective of this study was to determine the effect of internal control on financial performance of hospitality organisations (HOs) in Rivers State. The survey research design was adopted for this study. The population of the study was made up of all HOs operating in Rivers State. Convenience sampling technique was adopted in selecting twenty HOs that constitute the sample of this study. Data collection was done primarily using structured questionnaire and secondarily through journals, textbooks and the internet. The questionnaire was validated by senior academic and professional colleagues. The reliability index of the instrument was 0.765 obtained using the Cronbach Alpha technique. Data analysis was carried out using descriptive statistics of percentages, means and standard deviations. Linear regression and correlation analysis were used in testing the hypotheses postulated. The investigation found that internal controls to a significant extent influence financial performance of HOs and that a positive relationship exist between internal control and financial performance of HOs in Rivers State. The study concluded that the control environment affects total revenue as such influences the financial performance of HOs, its non-existence or inadequacy may spell doom for an orgainsation. One of the recommendations made was that management of HOs should regularly upgrade their information and communication framework to enable them cope with the frequent changes in the global environment and as such improve their financial performance.

Keywords: Control Environment, Financial Performance, Information and Communication, Internal control, Risk Assessment

Risk Management Best Practices and Challenges Encountered In Implementing the Risk Reduction Strategies in Industries (Published)

The need to ‘mainstream’ disaster risk reduction into development is a call to address risks emanating from natural hazards. This, states Benson and Twigg in their guidance notes for use by development organizations, on tools for mainstreaming disaster risk reduction; is evidence of the challenging situation. This paper is an exploration of best practices that can be undertaken by industries to reduce risks. The paper also discusses some of the challenges encountered in implementing risk reduction strategies. The authors thus conducted a study in Eldoret Municipality in the Rift Valley region of Kenya. Purposive sampling was used to select the industries and simple random sampling to select the study units which included Managerial staff and operational workers as well as labor officers in the Ministry of labor (Public Health Officers), fire brigade officers, Kenya National Environment Management Authority (KNEMA) and the Kenya Red Cross Society (KRCS) Regional officials. Interviews and questionnaires were used for data collection. Data was then analyzed using descriptive statistics. Hazard identification, risk assessment, control and monitoring while bottom-up communication and consultation model provided an important best practice for risk reduction. This study will help employers develop emergency response plans for risk reduction.

Keywords: Hazard, Information, Intervention strategies, Risk Assessment, Risk Management, Risk reduction

Identification and Assessment of Key Risk Factors Affecting Public Construction Projects in Nigeria: Stakeholders Perspectives (Published)

Managing risks in construction projects has been recognized as a very important management process in order to achieve the project objectives in terms of time, cost, quality, safety and environmental sustainability. However, until now most research have focused on some aspects of construction risk management rather than using a systematic and holistic approach to identify risks and analyze the likelihood of occurrence, its impacts on stakeholders and determine relative significance index score for each factor identified. This paper aims to identify and assess the key risk factors affecting public construction project delivery from project stakeholder perspectives. The research strategy was a sequential mixed- method approach. It was adopted by means of interview surveys (qualitative approach) followed by a questionnaire (Quantitative approach). Data collection was done through a questionnaire survey self-administered on 40 randomly selected construction industry participants. Out of the 40 questionnaires administered, 33responses fit for analysis were received representing 82.5%. Data were analyzed with the use of parametric and non-parametric statistics. Forty one risk factors were classified into five categories based on their source: Construction, Political, Financial and Economic, design related and environmental risks. The study reveals that these risk factors spread through the whole project life cycle and many risks occur at more than one phase, with the construction stage with risky phase. On the risk categories level all the stakeholders agreed on the finance category as the main factor threatening project completion, and the external category as having the least impact. Furthermore, clients and consultants held different perception on the impact of design category. It is concluded that clients, builders and government bodies must work cooperatively from the feasibility stage onwards to address potential risk in time, and contractors and subcontractors with robust construction and management knowledge must be employed early to make sound preparation for delivery out efficient and quality construction program. 

Keywords: Project Management, Risk Assessment, Risk Identification, Risk Impact, Risk Management, Stakeholder Perspectives, and Risk Analysis.