The financial risk management strategies used by Savings and credit cooperative societies operating Fosa services in Nairobi county

Abstract

The purpose of this study was to determine the risk management strategies used by FOSA SACCOs in Nairobi County. The population of study was the FOSA SACCOs in Nairobi County. The study focused on all 44 FOSA SACCOs. The population of interest was the risk managers or managing directors of the organizations. The research instrument used was questionnaires which were pre-tested to confirm clarity of the questions and their validity and reliability. Questionnaires are typically used to determine the current status or situation or to estimate the distribution of characteristics in a population. (Mugenda and Mugenda, 1999). Data was be analyzed using quantitative techniques and then presented using distribution tables, diagrams, charts and graphs. The major findings drawn after the analysis was that most FOSA SACCOs use the strategies of active oversight board, policies, procedures and limits and comprehensive internal controls in financial risk management.. The main recommendation is that more improvement on the strategies that are currently used is necessary to ensure that they remain relevant and meeting the specific needs of the FOSA SACCOs. Additionally financial risk management information systems need to be explored and adopted.