Operations risk management practices and service delivery among government owned entities in kenya

Abstract

Businesses today are faced with greater challenges and complications than ever before as economical, technological and legal interdependence become more common and pronounced. Due to these developments, risks may go unidentified for too long and early warning indicators ignored. In light of this, this study seeks to establish the operations risk management practices commonly used and determine the relationship between operations risk management practices and service delivery among Government Owned Entities in Kenya. The study adopted a descriptive survey design and the population of study was from Government owned entities in Kenya. The study selected respondents using simple random sampling technique. The data was collected using questionnaires that were administered to employees. The collected data was coded and analyzed in Excel (2007) program. The analysis involved the use of descriptive statistics; tables and pie charts. The study found that GOEs have embraced operational risk management practices and commonly used practices include risk control self assessment, identification of key risk indicators and compliance to rules and regulations. Lack of full support and enough resources to support operational risk management practices was identified as existing challenge. Board oversight, periodic audits, tracking of mitigations, existence of operation risk management strategy and oversight by parent/line ministry are some of the activities that help GOEs in managing operations risks. These practices also influence service delivery at different levels. It was established that operation risk management self assessment has a positive significant effect on service delivery as indicated by a beta coefficient of 0.566. The study further, found that operation risk indicators identification practices has a positive insignificant influence on service delivery. Finally, the results indicated that Operational Risk Rules and Regulations have a positive significant influence on service delivery.