Analysis of the relationship between risk management strategies and projects' sustainability in Kajiado county, Kenya.
Gikunju, David Theuri
MetadataShow full item record
A major challenge to development in many countries especially developing ones is how to sustain development gains. Several projects that have been implemented with large sums of money tend to experience serious challenges of sustainability. Many business related projects in rural areas are faced with sustainability challenges due to inability to intergrate risk management strategies in their project cycles. It is unclear what long term commitment on the side of project initiators and community have on management of risks associated with rural based business projects. This problem has prompted a research on the relationship between risk management strategies and sustainability of rural based business projects.The study is aimed at establishing the relationship between risk avoidance,risk retention,risk reduction and risk transfer on sustainability of rural based business projects in Kajiado County.The study adopted descriptive survey design to examine the relationship between risk management strategies and sustainability of rural based business projects in Kenya.Stratified random and purposive sampling was used to select project officials and beneficiaries to partcipate in the study.Data was collected using semistructured questionnaire. The information gathered was analysed using Statistical Package for Social Sciences. The output was presented using frequency and percentage charts and interpretations made based on research objectives. The study findings indicated that project sustainability efforts were undertaken by men who seemed to be more involved in projects than women. Lack of knowledge pool in many rural based business projects may be a strong indicator of unaddressed skill gap as far as sustainability of projects is concerned. There is no long term sustainability of projects as most projects seem to exist for a period of less than 10 years. There was general implication of use of various risk management strategies to ensure sustainability of rural based business projects. Sustainability, however was found to be a component of the effectiveness of the risk management strategies as well as the ability to enjoy the potential benefits of a project ventures . Risk management strategies in many business based projects include; risk avoidance, risk retention, risk reduction and risk tranfer.A voiding risks through venturing into non risky projects is a major characteristic of rural based business projects. A positive relationship, but at varying degree exists between risk management strategies and sustainability of rural based business projects. The study recommended a strategic approach to sustainability of rural based business projects, through utilization ofthe less practiced methods such as risk reduction and risk transfer achieved through outsourcing and just in time procurement. Care should be taken in ensuring that risk management strategies are in line with associated project benefits and expansion of rural training facilities by the government to enhance development through projects.