The Effectiveness of Risk Management Practices by Management in Selected Water and Sanitation Service Providers in Zambia

This study examines the effectiveness of the management operationalising risk management practices in the water and sanitation Commercial Utilities (CUs) in Zambia. Using a cross-sectional quantitative approach, survey information was collected from 120 purposively selected staff across governance, operations, finance, internal audit, and other risk-related functions. The results show a positive relationship between management-facilitated risk practices and overall risk management effectiveness. Increased effectiveness is associated with having a formal risk management framework, systematic risk identification and documentation, implementation and monitoring of mitigation plans, and integration of risk considerations into strategic planning processes along with service delivery priorities. The instruments for measuring the variables were shown to have a high internal consistency (risk management practices alpha = 0.872; board governance alpha = 0.893). Pearson correlations show that formal RM frameworks have a significant link to management risk practices (r = 0.424, p = 0.001), and board oversight is linked to mitigation monitoring (r = 0.326 to 0.420, p = 0.001). Regression analysis suggests that management integration of risk practices explains 19.6% of variance in risk management effectiveness, R2 = 0.196, F = 5.541, P = 0.000. Key constraints that were identified by respondents include weak management commitment (M = 2.97), lack of resources (M = 3.12), weak audit independence (M = 2.75), and inadequacy of risk management training (M = 2.99). The study recommends strengthened leadership commitment, increased allocation of resources, integrated strategic approaches, and a need for a proactive risk culture to enhance performance.