Risk management in Etablissement Kazoza et Compagnie-Rwanda

1.2 Statement of the problem

The EKJ & CIE like any other business company was under threat of a number of business risks. These are linked with high competition, tax penalties, theft, insufficient capital investments, unstable human resource, physical injuries to personnel, fraud, global economy crisis etc.

The researcher investigated the company's operational risk management plan, assessed challenges they face and examined the current trend in risk management. The researcher also assessed the level of awareness of company's staff about risk and how they deal with them.

1.3 The purpose of the study

This study aimed at examining how EKJ&CIE deals with potential risks that endanger its businesses. It found out the current trend in risk management strategies in EKJ&CIE and assessed the employees' awareness in matters related to risk management procedure. It aimed at finding out the gap in risk management between the current and the one desired and made appropriate recommendations to the management of EKJ&CIE which other similar business institutions may benefit as well.

1.4 Objectives of the study

1.4.1 General objective of the study

To examine the risk management plans of EKJ&CIE. These are documents prepared by/for the manager to foresee risks, to estimate the impacts, and to create response plans to mitigate them.

1.4.2 Specific objectives of the study

1. To explore the level of awareness of EKJ&CIE employees in relation with risk management

2. To analyse the risk management plans used in EKJ&CIE

3. To investigate challenges faced by the risk management in EKJ&CIE

4. To examine the current trend of risk management in EKJ&CIE

The following questions were raised from this study:

1. What is the level of awareness of EKJ&CIE employees in relation with risk management?

2. What are plans of risk management in EKJ&CIE?

3. Which challenges does EKJ&CIE face in relation with risk management?

4. What is the current trend of EKJ&CIE in risk management?

1.5 Scope of the study

This study covered only the area of risk management whereby the researcher analysed how the management assessed, treated and communicated risks. The research demonstrated risk management plans used in EKJ&CIE, identified challenges faced, assessed the level of awareness of the staff and, examined the current trend of EKJ&CIE in risk management. It was a case study due to financial and time constraints and was carried out in EKJ&CIE and covered the period from 2006 to 2011.

1.6 Significance of the study

Risks are worldwide and human beings need to control and minimize them at some extent in order to cope with life. In the business/project environment, it is ideal to equip with a well structured risk management which requires sequential and orderly phases namely; Risk identification, quantification, response, monitoring and control. However, there have been a lot of researches done in other countries regarding risk management as one of business promoting strategies. However, in Rwanda, there was no research done concerning risk management in private businesses/projects and therefore no information was available on risk management as business promoting strategy. The study highlighted the role of risk management plans, challenges of risk management plans, the current trends of risk management and the employee awareness regarding risk management in EKJ&CIE.

It was hoped that the findings from this study would be relevant to a variety of beneficiaries including the researcher, Kabale University, future readers of the findings as well as the EKJ&CIE management.