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Allocation of resources for risk management activities by business organisations in developing countries: Evidence from Zambia

Author

Listed:
  • Peter Silwimba

    (International Consult, Lusaka, Zambia)

  • Olajide Solomon Fadun

    (Department of Actuarial Science and Insurance, Faculty of Management Sciences, University of Lagos, Akoka Lagos, Nigeria)

Abstract

This study evaluates resources allocated for risk management by business organisations (financial and non-financial firms) in developing countries, using Zambia as a case study. Primary data collected from 158 organisations were analysed using MegaStat. The findings revealed that the majority (54.5%) of organisations, especially non-financial institutions, only commit resources to risk mitigation on an Adhoc or post-event basis, while 45.5% showed a budgeted approach. A significant part of the budgeted 45.5% was used for risk management activities, and 54.5% was used for regular daily operations. Despite this variation, all organisations engaged reported a significant expenditure on risk management, at least on Adhoc. At 4 degrees of freedom (df), which was one less than the total number of possible outcomes, a non-parametric test for significance yielded a scientific P-value of 1.57e-0.7, (a numerical magnitude of 0.0014, P

Suggested Citation

  • Peter Silwimba & Olajide Solomon Fadun, 2022. "Allocation of resources for risk management activities by business organisations in developing countries: Evidence from Zambia," Bussecon Review of Social Sciences (2687-2285), Bussecon International Academy, vol. 4(2), pages 15-24, April.
    • Handle: RePEc:adi:bsrsss:v:4:y:2022:i:2:p:15-24
    DOI: 10.36096/brss.v4i2.381
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    References listed on IDEAS

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