EFFECT Iof Irisk Iassessment Ipractices Ion Isupply Ichain Iperformance Iin Ipublic Icorporations: CASE Iof Ikenya Ipower Icompany

ABSTRACT

Risk iassessment ipractices ienable iorganizations ito iprioritize irisks ito iestablish imost ito ileast icritical iimportance iin iranking. iRisks iare ievents icaused iby iuncertainties, iwhich ican ihave ipositive ior inegative ieffect ion ithe iproject iobjective. iSupply ichains ihave iexpanded irapidly iover ithe idecades, iwith ithe iaim ito iincrease iproductivity, ilower icosts iand ifulfill idemands iin iemerging imarkets. iHowever, ithere iare irisks iwithin ithe iorganization iwhich icould igreatly iaffect iall iunits iof ithe iorganization iwhen ithe idisruptions iare inot iproperly icontrolled, itherefore irisk iassessment ishould ibe ibuilt iinto ithe imanagement iof iprojects. iSome ifirms iconcentrate ion ithe icustomer isatisfaction iand igive ilittle iconcentration ito icustomer iservice itrends ithat iwill idrive icustomer isatisfaction iin ithe ifuture ithus ithere iis ia iknowledge igap iwhich ithis istudy isought ito iaddress. iOrganizations ihave inot iclearly ishown ithe ifirm irisk ilevels iand ihow ithey ishould ibe istrongly imonitored ito iensure icost ireduction iand iimprove iprofitability. iThe istudy iassessed ithe ieffect iof irisk iassessment ipractices ion isupply ichain iperformance iin iKenya iPower iCompany iin iKisumu. iSpecifically, ithe istudy: iassessed ithe ieffect iof irisk iidentification ipractice ion isupply ichain iperformance, idetermined ithe ieffect iof irisk ianalysis ipractice ion isupply ichain iperformance iand iestablished ithe ieffect iof irisk ievaluation ipractice ion isupply ichain iperformance. iThe istudy iwas ibased ion iagency iand ishareholders itheories iand iguided iby ia iconceptual iframework iwhere ithe idependent ivariable iwas isupply ichain iperformance iand iindependent ivariable iwas irisk iassessment ipractices. iThe istudy iadopted icorrelational iresearch idesign, ithe ipopulation icomprised iof i45 iheads iselected ifrom idifferent idepartments iin iKenya iPower iCompany. iThe istudy iemployed irandom isampling idesign. iData iwas icollected ifrom iboth iprimary iand isecondary isources. iValidity iwas itested ithrough ijudgement iof iexpert‟s iopinion iwhile iReliability iwas iascertained ithrough iCronbach‟s ialpha iwhere iα i0.7 iwas iconsidered ireliable. iData iwas ianalyzed iusing idescriptive iand iinferential istatistics. iFindings irevealed ithat irisk iidentification ipractice iwas ia ipositive iinsignificant ipredictor iof isupply ichain iperformance i(β i= i.035 i(p i= i.05), irisk ianalysis iwas ia ipositive isignificant ipredictor iof isupply ichain iperformance i(β i= i.326 i(p i= i.000) iand irisk ievaluation iwas ia ipositive isignificant ipredictor iof isupply ichain iperformance i(β i= i.314 i(p i= i.05). iWhen ip>0.05, ithe iNull ivalues ibecome iinsignificant, imeaning ithat ia iunit ichange iin ipractice iof irisk iidentification, irisk ianalysis iand irisk ievaluation ileads ito ian iincrease iin isupply ichain iperformance. iThe istudy iconcludes ithat iembracing irisk iidentification, irisk ianalysis iand irisk ievaluation ileads ito iincreased isupply ichain iperformance. i iThe istudy irecommends ithat iKPLC iKisumu ibranch ishould iintensify ithe ipractice iof irisk iidentification, irisk ianalysis iand irisk ievaluation ias ithis iwas ifound ito iimprove isupply ichain iperformance iof ithe iutility. iThe iresults iof ithe istudy imay ibe iused iby ipolicy imakers ion irisk iassessment ipractices iand isupply ichain iperformance iby iresearchers ias ia isource iof iliterature. i i