Enterprise risk management (ERM) performance strategies of national water and sanitation council of Zambia (2010 – 2022).
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Date
2023
Authors
Mayaba, Angela
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
Scholars have argued that although Enterprise Risk Management (ERM) is a necessity to organizations or companies, the rate of implementation is still low (Mc Neil, 2015). The problem however, remains that most authors have not specifically looked at the effects of Enterprise Risk management processes on the performance of public regulatory bodies such as NWASCO. Therefore, this study sought to evaluate the effects of Enterprise Risk Management Strategies on the problems that affect the performance of the National Water Supply and Sanitation Council in Zambia. To pursue the study objectives, the study adopted a mixed research approach in which both qualitative and quantitative research designs were used. It also used a scientific survey design for the target population of 200 people were the sample size was selected from. The sample consisted of 20 managers and 44 officers who were purposively selected from the National water and sanitation company body and the three (3) utility companies’ Finance, Audit and Risk management departments. The data collected was analysed using the content analysis for qualitative data and Advanced Microsoft excel data analysis for quantitative data. From the study findings, most of the information given by the respondents indicated that there is no specific ERM framework being used by NWASCO after analysis and interviews with management as well as other respondents. Findings also revealed lack of knowledge on Risk Management being used by NWASCO in their operations. The organisation has not employed a qualified risk officer and it does not have a Risk department which looks into the company risks independently. However, NWASCO has not adequately put in place measures that would lead to a reduction in its exposure to risk to achieve the objectives, these measures included but not limited to; the Provision of incentives for service providers who comply with regulations set by NWASCO, Penalties For non-compliance to regulations, Community involvement and Audit-based regulation approach. The study recommended that NWASCO should develop and implement an appropriate ERM framework at strategic and operational level, which can offer exceptional value if it is soundly applied. This can help in identifying, categorizing, analysing and prioritising and treatment of risks at operational and strategic levels. Effective ERM risk framework adoption and implementation at Board level and operational levels should be based on a strong risk culture and risk profiling which requires the sponsorship of the executives in the company. In addition, the aggregation of risk information needs to be performed according to clear rules that everyone would understand and abide by.
Key words: Enterprise, Enterprise Risk Management, Performance Risk and NWASCO.
Description
Master of Business Administration in Finance.
Keywords
Enterprise risk management strategies--Effects of. , Enterprise risk management. , Performance risk management.