ABSTRACT

The study investigates the impact of risk management on organizational performance in Ministry of Works Umuahia Abia State. The specific objectives were to: examine the impact of risk management on organizational performance; ascertain the relationship between risk management and organizational performance and to determine the relationship between risk management and economic activities of the organization. The total population of 400 staff of Ministry of Works. Taro yamme were adopted to realize a total of 200 sample size in the study. The study adopted survey design and random sampling technique were also adopted Primary data sourced from distribution of questionnaires to 200 staff of Ministry of Works Umuahia Abia State, Nigeria were used for the study. A test-re-test was conducted to ensure validity and reliability of the data. The data were presented using descriptive statistics such as 5 point Liker/ scale. The hypotheses were tested using Chi-Square and correlation coefficient model (SPSS). The result reveal that majority of the respondents with 41.29% strongly agree that risk management impacts on organization performance to a very large extent; majority of the respondents' rate the relationship between risk management and organizational performance positive with 81.98%; majority of the respondents' rate the relationship between risk management and economic activities positive with 75.00%; 43.60% of the respondents strongly agree that management/operational risk has a very strong impact on organizational performance; 56.76% of the respondents strongly agree that there is a very strong impact between environmental risk management and organizational performance; 51.16% of the respondents' strongly agreed that legal risk management affects organizational performance. From the empirical result, since Chi-square (X?) calculated = 24.6156 and Chi-square (X?) tabulated = 15.507, thus, risk management has significant impact on organizational performance in Ministry of Works Umuahia, Abia State; there is positive relationship between risk management and organizational performance in Ministry of Works Umuahia, Abia State, Nigeria. There is direct relationship between risk management and economic activities of the organization. It was recommended that the top management cadre in the public sector needs to conduct assessments of the possible risks occurring during tendering and contract management processes and be able to devise mitigation strategies. This should be done through formulation and implementations of dynamic risk management policies which helps to smoothen daily activities in the Ministry. The implementation of risk management will improve performance and enhance shareholder value by identifying, evaluating, monitoring and controlling all risks that can hinder the organization from achieving its set objectives.