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Effect of Risk Management on Financial Performance of Private Hospitals in Mombasa County

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  • Harun Bwanamkuu Feirouz

    (School of Business and Economics, Kenya Methodist University)

  • Eric Mathuva

    (School of Business and Economics, Kenya Methodist University)

  • Paul Mwenda

    (School of Business and Economics, Kenya Methodist University)

Abstract

Effective risk management practices play a crucial role in enhancing the financial performance, operational stability, and overall resilience of organizations, ensuring they can effectively navigate uncertainties and challenges. Regardless of their importance, many private hospitals have yet to fully optimize their risk management strategies to mitigate financial uncertainties and stay competitive in the healthcare sector. This paper sought to examine the effect of risk management on the financial performance of private hospitals in Mombasa County. The study applied a descriptive research design. The study gathered data through questionnaires which were administered both physically and online. Data collected was analyzed through both descriptive and inferential analysis. Results revealed a β of 0.652 and a p-value of 0.001, between risk management and financial performance of private hospitals. The study concluded that risk management had a positive and significant effect on the financial performance of private hospitals in Mombasa County. The study recommends that private hospitals in Mombasa County should enhance their risk management practices by implementing robust systems for identifying and assessing potential risks proactively. Additionally, private hospitals in Mombasa County should prioritize risks based on their potential impact and likelihood. Lastly, the study recommends that private hospitals within Mombasa County should strive to improve monitoring and reporting mechanisms to help maintain a proactive approach to risk management, ultimately, enhancing financial performance.

Suggested Citation

  • Harun Bwanamkuu Feirouz & Eric Mathuva & Paul Mwenda, 2024. "Effect of Risk Management on Financial Performance of Private Hospitals in Mombasa County," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(7), pages 299-307, July.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:7:p:299-307
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    References listed on IDEAS

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    1. Gerda Barauskaite & Dalia Streimikiene, 2021. "Corporate social responsibility and financial performance of companies: The puzzle of concepts, definitions and assessment methods," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 278-287, January.
    2. Masrina Md Saad & Rina Fadhilah Ismail & Zuraidah Mohd Zam & Suhaily Hasnan, 2024. "Investigating the impact of effective risk management on the performance of Malaysian publicly listed companies," Edelweiss Applied Science and Technology, Learning Gate, vol. 8(1), pages 13-23.
    3. Isaac Kibet Kiptoo & Samuel Nduati Kariuki & Kennedy Nyabuto Ocharo, 2021. "Risk management and financial performance of insurance firms in Kenya," Cogent Business & Management, Taylor & Francis Journals, vol. 8(1), pages 1997246-199, January.
    4. Guangyou Zhou & Lian Liu & Sumei Luo, 2022. "Sustainable development, ESG performance and company market value: Mediating effect of financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3371-3387, November.
    5. David L. Olson & Desheng Wu, 2023. "Enterprise Risk Management Models," Springer Texts in Business and Economics, Springer, edition 4, number 978-3-662-68038-4, April.
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