Risk management in Etablissement Kazoza et Compagnie-Rwanda

CHAPTER FIVE: CONCLUSION, SUMMARY AND RECOMMENDATIONS

4.0 Introduction

This chapter presents the summary of the findings, conclusions and recommendations regarding the study carried out on risk management in private institutions using a case study of EKJ&CIE enterprise. The important findings of this study are outlined in this chapter. Finally, recommendations are provided based on the findings of this study.

4.1 Summary of the findings

The overall aim of this study was to find out how risk management is carried out in EKJ&CIE. Furthermore, the study explored whether this enterprise has structured risk management plans how it identifies and treats risks, which challenges it meets while performing risk management and assessed the level of employees' awareness in relation with risk management.

5.1.1 Risk management plans

Results from both interviewees show that there are no structured and written risk management plans but still employees have some knowledge about risk as confirmed by both interviewees, every employee gets some trainings on risks related to his/her domain of work but these are still insufficient compared to what should be done.

Even though, the enterprise does not have formal risk management plans which state how it should identify, quantify, treat, monitor and control risks, we cannot conclude that risk is meaningless to this company rather they feel it but need trainings on risk management so that the management can establish a strong risk management plan and get all related benefits.

Both interviewees confirmed the absence of risk management officer but mentioned some positive activities performed within the company which relate much with risk management such as the action of being aware of risks that face the enterprise such as high competition, money theft, injuries and death of employees working in electrical and building domains, financial loss, loss of data among others. Again both have knowledge on benefits of having risk management plans whereby both mentioned like:

1. Prevention of financial losses

2. Avoiding hazardous works, government penalties related to not paying taxes on time

3. Avoid money theft

4. Employee retention

5. Appropriate allocation of resources,

6. Good management of money,

7. Prevention of theft,

8. Prevention of staff injuries and deaths etc

This statement goes hand in hand with other literatures which state some common benefits as those above mentioned (Newland K.E.1997)

It was observed that the company has weakness in identifying risks where as both interviewees stated that there is no regular way of identifying risks unless there is a tangible risk that the company is likely to encounter soon. Literatures state that Management of risk is an integral part of good business practice and quality management. Learning how to manage risk effectively enables managers to improve outcomes by identifying and analysing the wider range of issues and providing a systematic way to make informed decisions. A structured risk management approach also enhances and encourages the identification of greater opportunities for continuous improvement through innovation ( http://portal.surrey.ac.uk).