Risk Management Practices and Performance of Mining Projects in Kwale County, Kenya

Abstract

Kenya's economy is considerably influenced by the mining sector, which contributes significantly to foreign exchange revenues, infrastructure development, and employment. Nevertheless, the effectiveness of risk management systems often affects the success of mining operations. This research investigated the influence of risk management strategies on the performance of mining projects in Kwale County, Kenya. The study explicitly examined the influence of risk identification, risk response planning, risk mitigation, and risk monitoring on the performance of mining operations in Kwale County, Kenya. The study was anchored on Risk Management Theory and the Agency Theory. A descriptive research design was adopted, targeting project managers, risk managers, and other key stakeholders involved in mining operations within Kwale County. The data was collected via the use of standardized questionnaires and interview guides, and was analyzed using a combination of qualitative and quantitative approaches. The study results demonstrated that risk management strategies are positively associated with enhanced performance of mining projects. Effective risk identification and assessment were shown to considerably minimize project delays and cost overruns, while proactive risk mitigation measures and constant monitoring were essential for sustaining project quality and safety requirements. Furthermore, the research suggests the administration of mining companies should prioritize risk response planning strategies. For example, the mining project management team must guarantee that project designs or operational plans are appropriately modified to mitigate risks. Additionally, the project team should establish rigorous safety protocols and conduct consistent training programs to mitigate the probability of accidents and injuries. To secure the performance of mining operations and mitigate risks, proactive strategies must be implemented in various areas, such as environmental management, regulatory compliance, market stability, and safety. The study suggests that mining operations should offer comprehensive safety training to all employees, with a focus on hazard recognition, emergency response, and secure operational practices.