Memoire Online - Risk management in Etablissement Kazoza et Compagnie-Rwanda

The researcher arranged appointments with the participants for the interviews after the researcher and the participants had agreed to conduct the interviews in one of the company office rooms.

The room in which the interviews were to be conducted was assessed prior to commencing to ensure that there are no possible interruptions and distractions to the quality of recordings. The researcher purposively selected 2 administrative managers and interviewed each one alone.

The interviews took an average of forty five minutes each. The interviews were conducted in English since it was the preferred language by the participants.

The interviews were guided after developing an interview guide. After clearly explaining the procedure, purpose and ensuring the participants their ethical values and anonymity, the researcher also asked for permission from the participants to use a tape recorder while conducting the interview. The interview begun by the researcher explaining some of terminologies that were to be used such as risk, risk management plan, personal protective equipment and they were then asked a question to open the discussion.

Interview Question	Response
	Respondent 1	Respondent 2
Existence of written Risk management Plans	No	No
Does EKJ&CIE have a Risk management Officer?	No	No
Benefits of having a Risk management Plan	-To identify potential risks -To prevent financial losses -To avoid hazardous works -To avoid government penalties -To avoid money theft -Employees retention	-Good allocation of resources, -Good management of money, -Prevention of theft, -Prevention of staff injuries, -Death prevention

The interview results above are related to the first objective whereby the researcher wanted to identify risk management plans used in EKJ&CIE. According to both interviewee answers, the company has neither written risk management plans nor risk management officer. However, both interviewees understand the benefits of having risk management system in the business whereby both state that benefits vary from identifying potential risks, preventing them to risk treatment. Nobody mentioned regular monitoring and control. Nevertheless, it is obvious that respondents have good ideas on risk management plan even though; it is not formally structured and documented in the company management system. But, the fact of having idea on risk management plans and their benefits is not enough alone, there should be a formal way of doing things, each employee should adhere too if the company wants to grow with time and hire a risk management officer because, risk management is particularly vital for any business especially private businesses, since some common types of losses such as theft, fire, flood, legal liability, injury, or disability can destroy in a few minutes what may have taken entrepreneur years to build. Such losses and liabilities can affect day to day operations, reduce profits, and cause financial hardship severe enough to cripple or bankrupt the business. EKJ&CIE management should employ a full time risk manager to identify risks and take the necessary steps to protect the firm against risks otherwise; the responsibility for risk management is likely to fall on the business owner.

Interview Question	Response
Interview Question	Respondent 1	Respondent 2
How does your company identify and treat risk?	-No structured risk management plan -Managers and Supervisors sit and solve the problems that seem to be imminent.	- There is no regular way of identifying risks but when there is an obvious risk, managers sit and find out how can prevent the occurrence.
How does the company deal with health and safety of employees?	-Availing helmets, gloves, appropriate shoes and aprons to staff working on building sites and repairing electrical wires and -Health insurance	- Equipment for protection, -Training on protection against injuries -Health insurance.
How do you control the company's financials?	-Two accountants available -Annual internal auditing	-External auditing, -Good accounting unit -Regular monitoring of ins and outs using information technology.
Does the institution have rules and regulations/Guidelines that all employees have to comply with?	Yes	Yes
Does the institution have a problem/incident reporting system?	No	No

According to the question asking how the management identify potential risk that the company may be victim of, both respondents agree that there is no formal way of doing it, but when there is an imminent problem, the management sits together and try to find out solution. As we know risk management is proactive and not reactive that is why they current way of identifying risks in EKJ&CIE is not proper, there is a high probability of being surprised by uncertain and harmful events to the business because these were not investigated by qualified people on time. Therefore, there should be a risk management system through which all possible risks are identified via brainstorming for instance, categorized and prioritised. Potential risk exposures are quantified and risk mitigation plans are planned for each specific risk.

Asking on how the company deals with health and safety to employees, they all mentioned the provision of PPE, insurance and trainings on protection against injuries.

All workers have a right to work in places where risks to their health and safety are properly controlled. Health and safety is about stopping the employee getting hurt at work or ill through work. The employer is responsible for health and safety. Again insuring employees is a responsibility from the employer which is positive.

On how the company controls the company financials, they have accountants; they carry out internal and external auditing and regular monitoring of ins and outs using information technology. Normally, financial risks arise from some sources; from the organization's exposure to changes in market prices, such as interest rates, exchange rates, and commodity prices, Financial risks arising from the actions of, and transactions with other organizations such as vendors, customers, and counterparties in derivatives transactions and financial risks resulting from internal actions or failures of the organization, particularly people, processes, and systems. The company is advised to diversify its activities as one of financial risk management process. Diversification among counterparties may reduce the risk that unexpected events adversely impact the organization through defaults. Diversification among investment assets reduces the magnitude of loss if one issuer fails. Diversification of customers, suppliers, and financing sources reduces the possibility that an organization will have its business adversely affected by changes outside management's control. Although the risk of loss still exists, diversification may reduce the opportunity for large adverse outcomes. The company has internal rules and regulations but does not have incident reporting system which normally serves as a way of reporting any incident or accident happened at work and find out solutions and preventive measures in the future.

Interview Questions	Response
	Respondent 1	Respondent 2
What potential risks does your company face?	-High competition of similar companies -Changes in technology -High financial demands to compete for bigger works -Theft of data, - Health safety to technicians	- Financial loss, -Desertion of qualified employees -Injuries and death of technicians -Equipment damage -Business collapse
Is your institution technologically and physically secure?	-Probably, because it has well built office. -We have competent staff -We are not totally secure technologically	-Not totally but we are not under high threat, we try by all means to keep the business as safe as possible.

As far as challenges are concerned, both respondents indicate high competition with bigger companies that perform similar works, changing technology, theft, injuries to employees, financial loss etc. To know whether the company is technologically and physically secure; no one disagreed or agreed, there probable technological insecurity but the company is not under high threat. That is why it should reinforce the IT system and recruit a risk management officer in order to deal with all potential risks highlighted by respondents.

Interview Question	Response
	Respondent 1	Respondent 2
*Do your employees get regular trainings on Risk management*	- Not regular	Not regular
*What is the future of risk management in your company?*	-To employ qualified people in Risk Management for the bright future of our business	-Hiring a consultant to explain at large the role of risk management. -Developing strong risk management plans in the near future
*Do you have anything else you might like to add, specifically related to the topic discussed on or anything else?*	-Trainings in Risk Management by PSF - More IT usage -More workshops in accounting and administration -Thank you	- Thank you for this great moment we shared.

The company provide some courses on risk management but not on regular basis. They should be done regularly in order to equip each and every employee with adequate knowledge in risk management.

On the future of risk management in EKJ&CIE; R₁suggestedto employ qualified people in Risk Management for the bright future of the business while R₂ wanted to hire a consultant to explain at large the role of risk management so that they can develop strong risk management plans in the near future. In addition, R₁ suggested an improvement in utilising information and technology management system, providing more workshops in finance, accounting and administration.

Risk management in Etablissement Kazoza et Compagnie-Rwanda

4.2 Section B: Qualitative Data