STRATEGIC RISK MANAGEMENT AND PERFORMANCE OF CEMENT MANUFACTURING FIRMS IN KENYA
Keywords:
Strategic Risk Management, Risk Assessment, Risk Response, Performance of Cement Manufacturing FirmsAbstract
Cement manufacturing firms play a crucial role in Kenya’s economic development by supporting key sectors such as construction, infrastructure, and real estate. However, cement manufacturing firms in Kenya face significant challenges in various areas that impact their performance. The general objective of the study was to determine the influence of strategic risk management on performance of cement manufacturing firms in Kenya. Specifically, the study sought to examine the influence of risk assessment on performance of cement manufacturing firms in Kenya and to assess the influence of risk response on performance of cement manufacturing firms in Kenya. This study was guided by: The Theory of Planned Behaviour (TPB) and The Contingency Theory. The cross-sectional research design was selected for this study. The target population comprised of 126 management employees working in seven cement manufacturing firms namely Bamburi Cement Limited, East Africa Portland Cement Company, ARM Africa Limited, Mombasa Cement, Savannah Cement, National Cement and Lafarge cement. In this study, the unit of analysis was cement manufacturing firms while the unit of observation was the 126 management employees working in seven cement manufacturing firms. The study employed a census approach to collect data from the all the 126 respondents hence no sampling technique was used. Primary data was used in this study. The study used questionnaire to collect the primary data. Data analysis was done through use of descriptive and inferential statistics. Descriptive statistics such as frequency distribution, mean (measure of dispersion), standard deviation, and percentages were used. Inferential data analysis was conducted by use of Pearson correlation coefficient, and multiple regression analysis. The study results were presented through use of tables and figures. The study concludes that risk assessment has a positive and significant effect on performance of cement manufacturing firms in Kenya. The study also concludes that risk response has a positive and significant effect on performance of cement manufacturing firms in Kenya. Based on the findings, the study recommends that the management of cement manufacturing firms should develop and implement well-structured risk response strategies to enhance operational performance and long-term sustainability. Effective risk response—through avoidance, mitigation, transfer, or acceptance—ensures that once risks are identified and assessed, appropriate actions are taken to minimize negative impacts or leverage potential opportunities.
Key Words: Strategic Risk Management, Risk Assessment, Risk Response, Performance of Cement Manufacturing Firms
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