The Effect of Risk Control Techniques on Organisational Performance of Selected SMES in Lagos State
Keywords:
risk control, organisational performance, SMEs, NigeriaAbstract
The aim of the study is to evaluate the effect of risk control techniques on organisational performance of selected SMEs in Lagos State. The specific objectives are to consider the effect of physical risk and financial control techniques on organisational performance of selected SMEs in Lagos State, Nigeria. The study is limited to the effect of risk control techniques on the performance of SMEs in Lagos State, Nigeria. The precise variables of interest are the physical risk control techniques which are risk elimination and risk reduction as well as the financial risk control techniques which focus on risk retention and risk transfer. The study covers 10 major clustered markets in Lagos State where there are selected SMEs ranging from Oil and gas, manufacturing companies, service companies, and general merchandise in Lagos State. The study employed a survey research design and adopted a convenience sampling method of selection and a multi clustered method was used in selection. A survey monkey was used to administer the questionnaire to the sampled respondents. The hypothesis was tested using regression analysis through the use of SPSS and the results showed that there is a positive and significant correlation. relation and effect of physical and financial risk control on organisational performance of selected SMEs. It was concluded that SMEs should embrace all efficient and economic means to address the potential risk that can threaten their existence.it was recommended that SMEs should increase its risk appetite to enhance efficient management of their business.
References
Acharyya, S. and Mutenga, L. (2013), Incessant Building Collapse in Nigeria: A Framework for Post-Development Incessant Building Collapse in Nigeria: A Framework for Post- Development Management Control.
Adeoye, M. (2010), Service quality measurements and demand for insurance: An empirical study from Nigeria insurance industry. Management and Marketing, 14 (2), 321-335.
Aernorld, N. (2013), Clients’ perspectives of risk management practice in Malaysian construction industry. Journal of Politics and Law, 1(3), 121. Zurich (2013). Challenges,risks and opportunities for SME. Zurich Insurance Group
Aguinis, D. (2007), On the Responsiveness of Insurance Industry in Nigeria to Social Needs,paper presented to the public service lecture series Lagos.
Ajemunigbohun, S. (2020), The craft of research. 4th ed. Chicago: The University of Chicago Press.
Ajemunigbohun, S.S. and Adeoye, A.O. (2018), Insurance awareness and acceptance: Empirical evidence among small and medium-sized enterprises in Lagos State, Nigeria. Trends Economics and Management, 12 (32), 9-19.
Akabueze, A. (2002), Analysis of the Basic Principles of Insurance under the Nigerian Law of Insurance. An unpublished bachelor of law project in Common Law, University of Ilorin,
Akintoye, A. S. and MacLeod, M. J., (1977), Risk analysis and management in construction. International Journal of Project Management, 15(1), 31- 38.
Arifin, Z. and Soleha, E. (2019), Overconfidence, attitude toward risk, and financial literacy: A case in Indonesia stock exchange. Review of Integrative Business and Economics Research, 8 (4), 144 – 152.
Aruwa, B. (2014). Risk management practices in SMEs: a case study of food and beverage industry. UITM
Aruwa, B. (2014), Element of insurance, Ikeja: Impressed publisher. Research Journal of Finance and Accounting ISSN 2222 – 2697 (paper) ISSN 2222 – 2847 (online) 3(5)
Asampana, G., Nantomah, K.K., and Tungosiamu, E.A. (2017), Multinomial logistic regression analysis of the determinants of students’ academic performance in mathematics at basic education certificate examination. Higher Education Researcher, 2 (1), 22-26.
Aslam and sarwar (2010) Quantity Surveying Practice and Administration, George Godwin, London.
Atkins, C. and Israel, G. D. (2013), Determining sample size. Gainesville: Institute of Food and Agricultural Sciences (IFAS).
Atkins, H. and Bates, M. (2007), Risk Management and Insurance, McGraw-Hill, New York.
Azende, V. (2011), Who Manages Risk? An Empirical Examination of Risk Management Practices in the Gold Mining Industry. The Journal of Finance 51(4): 1097- 1137
Azende, V. (2015), Project risk management, in project. Management International conference (Figure 2. Process of Project risk management) accessed 6th June
Badru, F.A., Yusuf, O.T., and Isola, W. (2013), Socio-cultural factors affecting insurance patronage in Lagos State, Nigeria: An exploratory study. African Journal of Accounting, Economics, Finance, and Banking Research, 4 (4), 34 – 46.
Bamford, M. and Bruton, D. (2016), Risk Management and Insurance, McGraw-Hill, New York.
Baxter, S. (2012), International Law, International Relations and Compliance: handbook of international relations. London: Raustiala Publishers
Boland, M., Collins, J., Dickson, A. and Ransom (2004), Policies, challenges, reforms and Nigerian deposition to insurance contracts. The Fronteira Post, 1-6
Candice, L. (2010), Trust and collaboration in construction process - conditions and experiences. (Gothenburg: Chalmers University of Technology).
Carton, F. and Hofer, J. (2006), A Study of Risk Management Techniques for Construction Projects in Developing Countries. International Journal of Innovative Technology and Exploring Engineering, 3(5), 139-142
Chapman, B. and Cooper, K. (2010), Project Risk Management: Techniques, and Insights. 2nd Ed, Wiley, New York, NY.
Chodokufa, H. (2009), Top Management Teams, Global Strategic Posture and the Moderating Role of Uncertainty. Academy of Management Journal, 44(1), pp. 533-545.
Cokins, A. (2014), Decision Making Under Risk. DAAAM International, Vienna.
Cooper, D.R. and Schindler, P.S. (2014), Business research methods. 12th ed. New York: McGraw-Hill Irwin.
Creswell, J.W. and Creswell, D.J. (2018), Research design: Qualitative, quantitative, and mixed methods approaches. 5th ed. New Delhi: Sage Publications India Pvt Limited.
Dickinson (2001), A Systematic Approach to Risk Management in Construction. St. Survey, 19(5), pp. 245-252. 71
Dorfman (2008), Causes of Construction Delays: Traditional Contracts. International Journal of Project Mnagement, 20, pp. 67-73.
Douglas, M. (2016), Tackling Causes of Frequent Building Collapse in Nigeria. Journal of Environmental Sciences and Resources Management, 4(1), 62-84
Fadun, O. (2013), Understanding and Managing Risks Necessary Condition for Success and Sustainability of Privately Finance Market Projects in Nigeria. Proceedings of the Fourth 69
Farah, M.C. and Dewi, P. (2018), the effect of financial literacy, risk attitude, and saving motive on bias disposition mutual funds investor in Indonesia stock exchange. Journal of Accounting and Financial Management, 4 (5), 62 – 75.
Fashola, A. (2013), Construction Delays and Their Tausative Factors in Nigeria. Journal of Construction Engineering Management, 132(7), pp. 667-677.
Frumina, D. and Mented, E. (2017), Construction Delay: A Quantitative Analysis. International Journal of Project Management, 20, pp. 51-59.
Gates, P. (2012), “Risk Assessment and Management in Construction Projects. College of Engineering, Guindy, Anna University, Chennai- 600025.
Gordon, M. (2009), Risk Management in Paskistani Business Projects. 3rd IEEE Conference on Computer Science and information Technology, pp. 16-21
Gray, D.E. (2017), Doing research in the business world. New Delhi: Sage Publications Asia- Pacific Pte Limited.
Harrington, G. (2016), An empirical study of financial literacy versus risk tolerance among higher education students. Public Finance Quarterly, 4, 444 – 456.
Head, L. (2009), Peg Helps Pull SAR Down in Global Rank. South China Morning Post, October, 2001.
Henschel, R. (2015), International Comparison of Costs for the Construction Sector Towards a Conceptual Model for Purchasing Power Parity. Report Submitted to the World Bank Group.
Hilson, J. (2004), The risk ranking of projects: a methodology. International Journal of Project Management, 19(3), 139- 145.
Inangand, F. and Ukpong, N. (2012), Incessant Building Collapse in Nigeria : A Framework for Post-Development Incessant Building Collapse in Nigeria : A Framework for Post- Development Management Control.
John, S. (2014), Incessant Collapse of Building: A Big Challenge to the Professional Women Builders. Journal of Environmental Sciences and Resources Management, 5(1), 88-91.17
Kaplan, R.S. and Norton, D.P. (1998), Insurance and behavioural economics: Improving decisions in the most misunderstood industry. New York: Cambridge University Press.
Kothari, C. and Garg, G. (2016), Research methodology: Methods and techniques. 3rd ed. New Delhi: New Age International (P) Limited.
Krallis, K. and Csonto, (n d), A critique of the role of the insurance sector in Nigeria.www.academia.edu/35360760 [Retrieved December 11 2019]
Lebas, T. and Euske, K. (2002), Understanding internally generated risks in projects. International Journal of Project Management, 23(8), 584-590.
Lusardi, A. (2019), Boosting financial literacy to improve livelihoods and economic prosperity. Washington, DC: The George Washington University School of Business and GFLEC Italian Financial Education Committee.
Mambula, N. (2002), Risk exposure in designbuild contracts. Byggteknik, 1, 33-34. (in Swedish).
Mango, J. (2007), A knowledgebased system for identifying potential project risks. Omega, 26, 623-638.
Matthew, A. and Scott, J. (2015), Management of Building Collapse in Nigeria : A Lesson from Earthquake-Triggered Building Collapse in Athens , Greece. 2(6), 36–42.
MRIS (2014), A fuzzy system for evaluating the risk of change in construction projects. Advances in Engineering Software, 37(9), 583-591.
Raghavan, O. (2015), Trust and collaboration in construction process - conditions and experiences. (Gothenburg: Chalmers University of Technology).
Senyefia, A., Adams, F.H., and Prah, K.A. (2019), Survival and multinomial logistics regression in analysis of Sekondi-Takoradi district level National health insurance data in Ghana. American Journal of Mathematics and Statistics, 9 (2), 109-114.
Slovick (2000), Project risk management in the Queensland engineering construction industry: a survey. International Journal of Project Management, 22(1), 51-61
SMEDAN (2014), Risk management in small construction projects. Department of Civil and Environmental Engineering. Licentiate thesis, (Luleå: LTU). SOU 2002:15, 2002, About competition, quality, costs and competence in construction sector. (Stockholm: Construction commission)
Stulz (2018), A fuzzy system for evaluating the risk of change in construction projects. Advances in Engineering Software, 37(9), 583-591.
Turpin, K. (2012), A proposal for construction project risk assessment using fuzzy logic. Construction Management & Economics, 18(4), 491-500.
Urciuoli, C. and Crenca, D. (2014), The choice of implementation, compensation and collaboration form in construction, Licentiate thesis,
Vaughan (2013), Risk management in the conceptual phase of a project. International Journal of Project Management, 17(3), 161-169.
Verbano, A. and Venturini, H. (2013), International Law, International Relations and Compliance: handbook of international relations. London: Raustiala Publishers
Wang, G. Ishak., and Kazis, J. (2013), Risk reduction through acquisitions: The roles of firm-specific investments and agency hazards. Advances in Mergers and Acquisitions, 5, 25-49.
Weidner, F. (2010) Risk Management Trends in the Hong Kong Construction Industry.
Yazid, A. S., and Hussin, H. M. R. (2015), The effect of CRO on ERM practices: Evidence from Malaysia. International Business and Economics Research Journal, 9(11), 55-64.
Yeo, K. T., and Lai, W.C. (2015), Risk management strategies for SME investing in China: A Singapore perspective. Proceedings of International, Engineering and Management Conference.
Adeoye, M. (2010), Service quality measurements and demand for insurance: An empirical study from Nigeria insurance industry. Management and Marketing, 14 (2), 321-335.
Aernorld, N. (2013), Clients’ perspectives of risk management practice in Malaysian construction industry. Journal of Politics and Law, 1(3), 121. Zurich (2013). Challenges,risks and opportunities for SME. Zurich Insurance Group
Aguinis, D. (2007), On the Responsiveness of Insurance Industry in Nigeria to Social Needs,paper presented to the public service lecture series Lagos.
Ajemunigbohun, S. (2020), The craft of research. 4th ed. Chicago: The University of Chicago Press.
Ajemunigbohun, S.S. and Adeoye, A.O. (2018), Insurance awareness and acceptance: Empirical evidence among small and medium-sized enterprises in Lagos State, Nigeria. Trends Economics and Management, 12 (32), 9-19.
Akabueze, A. (2002), Analysis of the Basic Principles of Insurance under the Nigerian Law of Insurance. An unpublished bachelor of law project in Common Law, University of Ilorin,
Akintoye, A. S. and MacLeod, M. J., (1977), Risk analysis and management in construction. International Journal of Project Management, 15(1), 31- 38.
Arifin, Z. and Soleha, E. (2019), Overconfidence, attitude toward risk, and financial literacy: A case in Indonesia stock exchange. Review of Integrative Business and Economics Research, 8 (4), 144 – 152.
Aruwa, B. (2014). Risk management practices in SMEs: a case study of food and beverage industry. UITM
Aruwa, B. (2014), Element of insurance, Ikeja: Impressed publisher. Research Journal of Finance and Accounting ISSN 2222 – 2697 (paper) ISSN 2222 – 2847 (online) 3(5)
Asampana, G., Nantomah, K.K., and Tungosiamu, E.A. (2017), Multinomial logistic regression analysis of the determinants of students’ academic performance in mathematics at basic education certificate examination. Higher Education Researcher, 2 (1), 22-26.
Aslam and sarwar (2010) Quantity Surveying Practice and Administration, George Godwin, London.
Atkins, C. and Israel, G. D. (2013), Determining sample size. Gainesville: Institute of Food and Agricultural Sciences (IFAS).
Atkins, H. and Bates, M. (2007), Risk Management and Insurance, McGraw-Hill, New York.
Azende, V. (2011), Who Manages Risk? An Empirical Examination of Risk Management Practices in the Gold Mining Industry. The Journal of Finance 51(4): 1097- 1137
Azende, V. (2015), Project risk management, in project. Management International conference (Figure 2. Process of Project risk management) accessed 6th June
Badru, F.A., Yusuf, O.T., and Isola, W. (2013), Socio-cultural factors affecting insurance patronage in Lagos State, Nigeria: An exploratory study. African Journal of Accounting, Economics, Finance, and Banking Research, 4 (4), 34 – 46.
Bamford, M. and Bruton, D. (2016), Risk Management and Insurance, McGraw-Hill, New York.
Baxter, S. (2012), International Law, International Relations and Compliance: handbook of international relations. London: Raustiala Publishers
Boland, M., Collins, J., Dickson, A. and Ransom (2004), Policies, challenges, reforms and Nigerian deposition to insurance contracts. The Fronteira Post, 1-6
Candice, L. (2010), Trust and collaboration in construction process - conditions and experiences. (Gothenburg: Chalmers University of Technology).
Carton, F. and Hofer, J. (2006), A Study of Risk Management Techniques for Construction Projects in Developing Countries. International Journal of Innovative Technology and Exploring Engineering, 3(5), 139-142
Chapman, B. and Cooper, K. (2010), Project Risk Management: Techniques, and Insights. 2nd Ed, Wiley, New York, NY.
Chodokufa, H. (2009), Top Management Teams, Global Strategic Posture and the Moderating Role of Uncertainty. Academy of Management Journal, 44(1), pp. 533-545.
Cokins, A. (2014), Decision Making Under Risk. DAAAM International, Vienna.
Cooper, D.R. and Schindler, P.S. (2014), Business research methods. 12th ed. New York: McGraw-Hill Irwin.
Creswell, J.W. and Creswell, D.J. (2018), Research design: Qualitative, quantitative, and mixed methods approaches. 5th ed. New Delhi: Sage Publications India Pvt Limited.
Dickinson (2001), A Systematic Approach to Risk Management in Construction. St. Survey, 19(5), pp. 245-252. 71
Dorfman (2008), Causes of Construction Delays: Traditional Contracts. International Journal of Project Mnagement, 20, pp. 67-73.
Douglas, M. (2016), Tackling Causes of Frequent Building Collapse in Nigeria. Journal of Environmental Sciences and Resources Management, 4(1), 62-84
Fadun, O. (2013), Understanding and Managing Risks Necessary Condition for Success and Sustainability of Privately Finance Market Projects in Nigeria. Proceedings of the Fourth 69
Farah, M.C. and Dewi, P. (2018), the effect of financial literacy, risk attitude, and saving motive on bias disposition mutual funds investor in Indonesia stock exchange. Journal of Accounting and Financial Management, 4 (5), 62 – 75.
Fashola, A. (2013), Construction Delays and Their Tausative Factors in Nigeria. Journal of Construction Engineering Management, 132(7), pp. 667-677.
Frumina, D. and Mented, E. (2017), Construction Delay: A Quantitative Analysis. International Journal of Project Management, 20, pp. 51-59.
Gates, P. (2012), “Risk Assessment and Management in Construction Projects. College of Engineering, Guindy, Anna University, Chennai- 600025.
Gordon, M. (2009), Risk Management in Paskistani Business Projects. 3rd IEEE Conference on Computer Science and information Technology, pp. 16-21
Gray, D.E. (2017), Doing research in the business world. New Delhi: Sage Publications Asia- Pacific Pte Limited.
Harrington, G. (2016), An empirical study of financial literacy versus risk tolerance among higher education students. Public Finance Quarterly, 4, 444 – 456.
Head, L. (2009), Peg Helps Pull SAR Down in Global Rank. South China Morning Post, October, 2001.
Henschel, R. (2015), International Comparison of Costs for the Construction Sector Towards a Conceptual Model for Purchasing Power Parity. Report Submitted to the World Bank Group.
Hilson, J. (2004), The risk ranking of projects: a methodology. International Journal of Project Management, 19(3), 139- 145.
Inangand, F. and Ukpong, N. (2012), Incessant Building Collapse in Nigeria : A Framework for Post-Development Incessant Building Collapse in Nigeria : A Framework for Post- Development Management Control.
John, S. (2014), Incessant Collapse of Building: A Big Challenge to the Professional Women Builders. Journal of Environmental Sciences and Resources Management, 5(1), 88-91.17
Kaplan, R.S. and Norton, D.P. (1998), Insurance and behavioural economics: Improving decisions in the most misunderstood industry. New York: Cambridge University Press.
Kothari, C. and Garg, G. (2016), Research methodology: Methods and techniques. 3rd ed. New Delhi: New Age International (P) Limited.
Krallis, K. and Csonto, (n d), A critique of the role of the insurance sector in Nigeria.www.academia.edu/35360760 [Retrieved December 11 2019]
Lebas, T. and Euske, K. (2002), Understanding internally generated risks in projects. International Journal of Project Management, 23(8), 584-590.
Lusardi, A. (2019), Boosting financial literacy to improve livelihoods and economic prosperity. Washington, DC: The George Washington University School of Business and GFLEC Italian Financial Education Committee.
Mambula, N. (2002), Risk exposure in designbuild contracts. Byggteknik, 1, 33-34. (in Swedish).
Mango, J. (2007), A knowledgebased system for identifying potential project risks. Omega, 26, 623-638.
Matthew, A. and Scott, J. (2015), Management of Building Collapse in Nigeria : A Lesson from Earthquake-Triggered Building Collapse in Athens , Greece. 2(6), 36–42.
MRIS (2014), A fuzzy system for evaluating the risk of change in construction projects. Advances in Engineering Software, 37(9), 583-591.
Raghavan, O. (2015), Trust and collaboration in construction process - conditions and experiences. (Gothenburg: Chalmers University of Technology).
Senyefia, A., Adams, F.H., and Prah, K.A. (2019), Survival and multinomial logistics regression in analysis of Sekondi-Takoradi district level National health insurance data in Ghana. American Journal of Mathematics and Statistics, 9 (2), 109-114.
Slovick (2000), Project risk management in the Queensland engineering construction industry: a survey. International Journal of Project Management, 22(1), 51-61
SMEDAN (2014), Risk management in small construction projects. Department of Civil and Environmental Engineering. Licentiate thesis, (Luleå: LTU). SOU 2002:15, 2002, About competition, quality, costs and competence in construction sector. (Stockholm: Construction commission)
Stulz (2018), A fuzzy system for evaluating the risk of change in construction projects. Advances in Engineering Software, 37(9), 583-591.
Turpin, K. (2012), A proposal for construction project risk assessment using fuzzy logic. Construction Management & Economics, 18(4), 491-500.
Urciuoli, C. and Crenca, D. (2014), The choice of implementation, compensation and collaboration form in construction, Licentiate thesis,
Vaughan (2013), Risk management in the conceptual phase of a project. International Journal of Project Management, 17(3), 161-169.
Verbano, A. and Venturini, H. (2013), International Law, International Relations and Compliance: handbook of international relations. London: Raustiala Publishers
Wang, G. Ishak., and Kazis, J. (2013), Risk reduction through acquisitions: The roles of firm-specific investments and agency hazards. Advances in Mergers and Acquisitions, 5, 25-49.
Weidner, F. (2010) Risk Management Trends in the Hong Kong Construction Industry.
Yazid, A. S., and Hussin, H. M. R. (2015), The effect of CRO on ERM practices: Evidence from Malaysia. International Business and Economics Research Journal, 9(11), 55-64.
Yeo, K. T., and Lai, W.C. (2015), Risk management strategies for SME investing in China: A Singapore perspective. Proceedings of International, Engineering and Management Conference.
Downloads
Published
2022-02-07
How to Cite
Ajemunigbohun, S. (2022). The Effect of Risk Control Techniques on Organisational Performance of Selected SMES in Lagos State: Array. Acta Universitatis Danubius. Œconomica, 18(1). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/1539
Issue
Section
Economic Development, Technological Change, and Growth
License
The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.
