Risk Management and Financial Performance of SACCOs

Abstract: The purpose of the study was to determine the effect of risk management on financial performance. The study used agency theory. This study adopted a descriptive research design. The target population of the study was drawn from all the senior management, middle level management and all staff of the seventeen SACCOs operating in Nairobi City County. The sample of the study was fifty one employees. The sample of 51 was generated by purposively sampling three employees from each SACCOs which included chief executive officer, finance manager and risk manager. This study used structured questionnaires for data collection. Collected data was cleaned and then entered into an SPSS programme for data analysis. Descriptive statistics such as percentages, mean trends and standard deviation will be computed to describe the characteristics of the variables while inferential statistics applied to establish the nature and magnitude of the relationship between the variables. Multiple regression and analysis of variance was used to test the relationship of one variable over the other. Based on the findings, the study concluded risk management were found to be positively related financial performance of savings and credit cooperative organization in Nairobi City. The study was to be significant to the directors of SACCOs, the government through the ministry of cooperatives and identify gaps for further research on the field. Keywords: risk management, financial performance, SACCOs, data analysis. Title: Risk Management and Financial Performance of SACCOs Author: Isaac O. Eshikumo, Dr. Elizabeth Nambuswa Makokha International Journal of Recent Research in Social Sciences and Humanities (IJRRSSH) ISSN 2349-7831 Vol. 12, Issue 2, April 2025 - June 2025 Page No: 20-28 Paper Publications Website: www.paperpublications.org Published Date: 30-April-2025 DOI: https://doi.org/10.5281/zenodo.15315372 Paper Download Link (Source) https://www.paperpublications.org/upload/book/Risk%20Management%20and%20Financial%20Performance%20of%20SACCOs-30042025-3.pdf