Abstract: Over the past three decades, risk management strategies have been an integral part for business continuity in many profit-oriented organizations. To achieve financial sustainability and increase profitability Organizations are obligated to review risks and plan for addressing, or mitigating, each of those risks to an acceptable level. In some cases, risks are accepted as is; in other cases, risks are transferred, and in still other cases, risks are minimized to a level acceptable to the organization. The impact of risk on the business environment deals with the level of understanding of cause effect relationships. The impact of a given state of events may cause uncertainty for a firm or business environment. By incorporating risk management into airport operations, JKIA is better equipped to exploit its resources; thereby enabling the organization to transform an expenditure activity into one that can yield a positive return. A risk management strategy is about achieving corporate goals. For many aviation organizations, dual goals exist such as the social and economic perspectives. The general objective of this study was to analyze the effect of risk management strategies on financial performance of JKIA. The study was guided by the following specific objectives: to find out the effect of risk reduction strategy on financial performance of Jomo Kenyatta International Airport, to investigate the effect of risk mitigation strategy on financial performance of Jomo Kenyatta International Airport, to determine the effect of risk assessment strategy on financial performance of Jomo Kenyatta International Airport and finally to establish the effect of risk transfer strategy on financial performance of Jomo Kenyatta International Airport. The study was based on portfolio theory, Stakeholder theory, Agency theory and Profit maximizing and competition-based theory. A descriptive research design was adopted. The target population of this study comprised of 400 respondents across all the departments and staff ranging from senior managers to junior staff attached at JKIA.Yamane’s formula (1967) was employed to determine the sample size to 120 staff members. Questionnaires were administered randomly to a sample of 120 respondents across the departments in the organization after a pilot study involving ten heads of sections in JKIA. The statistical package for social sciences, SPSS (version 24.0) was used for data analysis. Both descriptive statistics and inferential statistics were used to analyze the quantitative data. Stratified simple random sampling procedure will be used. Pearson’s correlation analysis was used to explore the relationships among the variables. This study established that risk reduction strategy significantly and positively influences financial performance of Jomo Kenyatta International Airport. The study also established that risk mitigation strategy was major and a positive influence on the financial performance of Jomo Kenyatta International Airport. The study further established that risk assessment strategy had a significant and positive impact on the financial performance of Jomo Kenyatta International Airport. Risk monitoring had significant and a positive effect on financial performance of Jomo Kenyatta International Airport as established in the study.
Keywords: risk reduction strategy, risk mitigation strategy, risk assessment strategy and risk avoidance strategy.
Title: EFFECT OF RISK MANAGEMENT STRATEGIES ON FINANCIAL PERFORMANCE OF JOMO KENYATTA INTERNATIONAL AIRPORT
Author: Nabukaki Harriet, Dr. Jane Omwenga
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
Vol. 10, Issue 2, April 2022 - June 2022
Page No: 297-310
Research Publish Journals
Website: www.researchpublish.com
Published Date: 24-May-2022
