IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v8y2024i7p299-307.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-8-issue-7/299-307.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/effect-of-risk-management-on-financial-performance-of-private-hospitals-in-mombasa-county/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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. 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, 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. Malik, Muhammad Farhan & Zaman, Mahbub & Buckby, Sherrena, 2020. "Enterprise risk management and firm performance: Role of the risk committee," Journal of Contemporary Accounting and Economics, Elsevier, vol. 16(1).
    6. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wu, Zihao & Gao, Jun & Luo, Chengdi & Xu, Hui & Shi, Guanqun, 2024. "How does boardroom diversity influence the relationship between ESG and firm financial performance?," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 713-730.
    2. Zhu, Jin & Zhi, Wenyuan & Fang, Yuanhan, 2025. "Ethical leadership, organizational learning, and corporate ESG performance: A moderated mediation model," International Review of Economics & Finance, Elsevier, vol. 98(C).
    3. Nebyu Adamu Abebe & Navkiranjit Kaur Dhaliwal, 2024. "An empirical investigation of corporate governance attributes and firm performance: evidence from the ethiopian insurance industry," SN Business & Economics, Springer, vol. 4(10), pages 1-25, October.
    4. Massimiliano Cerciello & Francesco Busato & Simone Taddeo, 2023. "The effect of sustainable business practices on profitability. Accounting for strategic disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 802-819, March.
    5. Werner Gleißner & Thomas B. Berger, 2024. "Enterprise Risk Management: Improving Embedded Risk Management and Risk Governance," Risks, MDPI, vol. 12(12), pages 1-15, December.
    6. Xu, Siyun & Bai, Xiaodong & Chen, Xia, 2025. "Corporate environmental, social, and governance performance, investor attention, and corporate development capability—An empirical examination based on moderating and threshold effects," International Review of Financial Analysis, Elsevier, vol. 102(C).
    7. Meles, Antonio & Salerno, Dario & Sampagnaro, Gabriele & Verdoliva, Vincenzo & Zhang, Jianing, 2023. "The influence of green innovation on default risk: Evidence from Europe," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 692-710.
    8. Müzeyyen Çiğdem Akbaş, 2024. "Measuring the impact of enterprise risk management on performance, value, and risk indicators of Borsa Istanbul XBANK companies with data mining prediction models," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-19, December.
    9. Wang, Xiaoteng & Zhou, Bole & Li, Xiaoling, 2025. "Qualified foreign institutional investors and corporate ESG performance: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 101(C).
    10. Xuan Zhang & Jingxian Zhang & Yongjie Feng, 2023. "Can companies get more government subsidies through improving their ESG performance? Empirical evidence from China," PLOS ONE, Public Library of Science, vol. 18(10), pages 1-25, October.
    11. Qian, Simeng, 2024. "The effect of ESG on enterprise value under the dual carbon goals: From the perspectives of financing constraints and green innovation," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 318-331.
    12. Hao He & Chonlavit Sutunyarak, 2024. "Perception of Corporate Social Responsibility, Organizational Commitment and Employee Innovation Behavior: A Survey from Chinese AI Enterprises," JRFM, MDPI, vol. 17(6), pages 1-21, June.
    13. Hao, Xiaoli & Sun, Qingyu & Li, Ke & Li, Peilun & Wu, Haitao, 2024. "Does environmental decentralisation improve ESG performance? Evidence from listed companies in China," Energy Economics, Elsevier, vol. 139(C).
    14. RareÅŸ HURGHIÅž, 2023. "Impact Of Esg Reporting On The Romanian Capital Market," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(25), pages 1-16.
    15. Sara Faedfar & Mustafa Özyeşil & Mustafa Çıkrıkçı & Esin Benhür Aktürk, 2022. "Effective Risk Management and Sustainable Corporate Performance Integrating Innovation and Intellectual Capital: An Application on Istanbul Exchange Market," Sustainability, MDPI, vol. 14(18), pages 1-13, September.
    16. Hanjin Xie & Zilong Qin & Jun Li, 2024. "Entrepreneurship and Corporate ESG Performance—A Case Study of China’s A-Share Listed Companies," Sustainability, MDPI, vol. 16(18), pages 1-19, September.
    17. Sylos Labini, Stefania & di Biase, Pasquale & D'Apolito, Elisabetta, 2025. "Sustainability strategy and financial performance in the insurance company," International Review of Economics & Finance, Elsevier, vol. 98(C).
    18. Ajithakumari Vijayappan Nair Biju & Snehith Jacob Kodiyatt & P. P. Nithi Krishna & Geetha Sreelekshmi, 2023. "ESG sentiments and divergent ESG scores: suggesting a framework for ESG rating," SN Business & Economics, Springer, vol. 3(12), pages 1-21, December.
    19. Liu, Yang & Jin, Xiao Meng & Ly, Kim Cuong & Mai, Yong, 2024. "The relationship between heterogeneous institutional investors’ shareholdings and corporate ESG performance: Evidence from China," Research in International Business and Finance, Elsevier, vol. 71(C).
    20. Saeed, Asif & Hamid, Samreen & Manita, Riadh & Suntraruk, Phassawan, 2025. "CSR decoupling and financial fraud: Unveiling the hidden nexus in US-listed firms," Research in International Business and Finance, Elsevier, vol. 75(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:8:y:2024:i:7:p:299-307. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.