Risk Management Strategies and Performance of Civil Society Organizations in Homabay County, Kenya

Ndirangu Joram Kabiro, Dr. Millicent Mboya (PhD)

Abstract


In Kenya, over 60% of NGO-registered NGO’s fail to complete their life cycles or perform poorly. For example, in 2015, out of 15 projects registered by eight local NGOs with an expected two-year maturity period, only six in health, youth, and community development achieved positive performance. This study examines the relationship between risk management strategies and organizational performance of CSOs in Homa Bay County, Kenya. The study is guided by two primary objectives: To establish the influence of risk identification on organizational performance of CSOs, and to assess the influence of risk governance on organizational performance of CSOs in Homa Bay County, Kenya. Two primary theories, Stakeholder Theory and Agency Theory, guided the study. A descriptive research design is adopted, employing both qualitative and quantitative methods to collect and analyze data. The target population consisted of strategic leaders, such as CEOs, board members/committee members, Functional managers from 142 organizations totaling to 574 respondents. Using Slovin's formula, the sample size was 236 respondents. Primary data was collected through structured questionnaires. Secondary data was derived from institutional documents and reports. Descriptive and inferential statistical techniques, including regression and variance analysis, were used to analyze the data, providing insights into how different risk management strategies contribute to the overall organizational performance of CSOs. The study concludes that risk identification has a positive and significant effect on organizational performance of CSOs in Homa Bay County, Kenya. The study also concludes that risk governance has a positive and significant effect on organizational performance of CSOs in Homa Bay County, Kenya. Based on the findings, the study recommends that the management of civil society organizations in Kenya should strengthen risk governance by clearly defining risk oversight roles for the board and senior management and integrating risk management into organizational policies and strategic planning. When boards actively oversee risk through regular reporting, compliance monitoring, and accountability mechanisms, CSOs are better positioned to align risk management with their mission and objectives.

Keywords: Risk Management Strategies, Risk Identification, Risk Governance, Performance of Civil Society Organizations


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