CRITICAL ANALYSIS OF RISK MANAGEMENT OF ASHAKA CEMENT PLC

ABSTRACT

The study critically analyzed the impact of risk management on the performance of Ashaka Cement Plc. Ashaka cement plc. have made investments in personnel, processes and technology to help control both operational, financial and strategic risk. Historically, this manufacturing industry has focused primarily on manufacturing cement product. Random sampling was used to select 200respondents out of 602 of the total population. The research instruments majorly used included a set of questionnaires; for the respondents. The data collected has been presented using tables. As financial risk management influence the performance of Ashaka Cement Plc. the study recommends the company to enhance the financial risk management by providing its employees with enough technical know-how concerning financial risk management. Thefindingsofthestudyalsorevealthat operational risk management influences the performance of Ashakacementplc. which by all means Ashakacementplc should concentrate more on providing safety means to its employees and avoid machinery breakdown. Thefindingsofthestudy alsoindicatesthatstrategicrisk managementinfluencestheperformance ofAshakacementplc.the study recommends Ashaka cement plc. to find a way of motivating it employees by use of incentives inorder to help  the company suggest tactics on how to handle risk in an effective and efficient way.

TABLE  OF CONTENT

CHAPTER ONE

INTRODUCTION

1.1Background of the study----------------------------------------------------------------------------------1.2Theoretical Framework---------------------------------------------------------1.2.1Definition of Risk---------------------------------------------------------------------------1.3Statement of the problem------------------------------------------------------------------1.4Objectives of the Study----------------------------------------------------1.5Research Questions--------------------------------------------------------------------------------------1.6Research Hypotheses--------------------------------------------------------1.7Scope of the Study-------------------------------------------------------------------.8

Motivation of the Research-------------------------------------+---------------------1.9Research Methodology---------------------------------------------------------------1.10Significance of the study--------------------------------------------1.11Structure of the Research------------------------------------------------------------------8

CHAPTER TWO LITERATURE REVIEW

2.1Introduction-----------------------------------------------------------------------------------------------------2.2ConceptofPerformance-----------------------------------------------------------------------------------

2.2.1 PerformanceSeenasaKeyConceptandItsDimensions------------------------------------------10

2.2.1.1“Performance”versus“Efficiency”and“Efficacy”--------------------------------------------2.2.2Thedimensionsofperformance-----------------------------------------------------------------------2.2.3PerformanceasaDynamicConcept------------------------------------------------------------------2.3ConceptofRiskManagement------------------------------------------------------------------------------2.3.1WhyRiskManagementinanOrganization----------------------------------------------------------2.3.2TheRiskManagementStrategies----------------------------------------------------------------------2.3.3RiskManagementProcedure----------------------------------------------------------------------------2.3.4RiskEvaluation-----------------------------------------------------------------------------------------------2.3.5RiskResponse-------------------------------------------------------------------------------------------------2.3.6RiskMonitoring,Controlling,andReporting------------------------------------------------------212.3.7TheRolesofRiskManagement------------------------------------------------------------------------222.3.8RiskManagementProcess-------------------------------------------------------------------------------222.3.9RiskManagementPoliciesandRiskLandscape-----------------------------------------------2.3.10Rolesoffinancialriskmanagement----------------------------------------------------------------262.3.11RolesOperationalriskmanagement---------------------------------------------------------------292.3.12Roleofstrategicriskmanagement------------------------------------------------------------------2.4TheoriesandModelofRiskManagement------------------------------------------------------------2.4.1RiskManagementTheory---------------------------------------------------------------------------------2.4.2EnterpriseRiskManagementTheory----------------------------------------------------------------2.4.3ContingencyPlanningTheory--------------------------------------------------------------------------2.4.4AgencyTheory-----------------------------------------------------------------------------------------------2.4.5StakeholderTheory----------------------------------------------------------------------------------------2.5BriefHistoryoftheAshakaCementPlc.------------------------------------------------------------

2.6SummaryoftheChapter------------------------------------------------------------------------------------39

CHAPTER THREE

RESEARCHMETHODOLOGY

3.1Introduction-------------------------------------------------------------------------------------------------------403.2ResearchDesign-----------------------------------------------------------------------------------------------403.3PopulationoftheStudy--------------------------------------------------------------------------------------403.4SampleTechnique/SampleSize-------------------------------------------------------------------------403.5MethodofDataCollection----------------------------------------------------------------------------------403.5.1 PrimarySourcesofData--------------------------------------------------------------------------------413.5.2 SecondarySourcesofData---------------------------------------------------------------------------413.6InstrumentforDataCollection----------------------------------------------------------------------------413.7ConceptualFramework--------------------------------------------------------------------------------------413.8MethodofAnalysis/HypothesisforAnalysis-----------------------------------------------------423.9SummaryoftheChapter-----------------------------------------------------------------------------------43

CHAPTER FOUR DATA ANALYSIS AND DISCUSSION OF RESULT

4.1Introduction------------------------------------------------------------------------------------------------------444.2DataAnalysis---------------------------------------------------------------------------------------------------444.3SectionA:PersonalData----------------------------------------------------------------------------------444.4 SectionB:ResearchQuestionOne------------------------------------------------------------------464.5SectionC:ResearchQuestionTwo------------------------------------------------------------------494.6SectionD:ResearchQuestionThree-----------------------------------------------------------------51

4.7HypothesisTesting------------------------------------------------------------------------------------------53

4.7.1TestingofHypothesisOne----------------------------------------------------------------------------54

4.7.2TestingofHypothesisTwo---------------------------------------------------------------------------57

4.7.3TestingofHypothesisThree-------------------------------------------------------------------------60

4.8ResearchFindings-------------------------------------------------------------------------------------------63

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4.9DiscussionofResearchFindings---------------------------------------------------------------------63

4.10SummaryoftheChapter--------------------------------------------------------------------------------64

CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1Introduction-------------------------------------------------------------------------------------------------65

5.2Summary-------------------------------------------------------------------------------------65

5.3Conclusion-----------------------------------------------------------------------66

5.4Recommendations------------------------------------------------------------------66

5.5AreaforFurtherStudies-------------------------------------------------------------68

References-----------------------------------------------------------------------------69

Appendix------------------------------------------------------------------------------

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LIST OF FIGURES Figure1.Relation“strategy”–“performance”------------------------------------------------------------11Figure2:Efficiencyattheorganizationallevel---------------------------------------------------------12Figure3ExplainingEffectivenessattheorganizationallevel-----------------------------------12Figure4.Thedimensionsofperformance----------------------------------------------------------------13Figure5:Theactionmodeofriskmanagement--------------------------------------------------------31Figure6:ConceptualFramework-----------------------------------------------------------------------------5