The Effect of Risk Management Practices on Organizational Performance at Prime Insurance Ltd, Rwanda

The purpose of this research dissertation was to examine the effect of Risk management practices on organizational. This research dissertation was guided by the following specific objectives which were to investigate the effect of risk identification on organizational performance at PRIME INSURANCE ltd, to establish the effect of risk assessment on organizational performance at PRIME INSURANCE ltd; to analyze the effect of risk mitigation on organizational performance at PRIME INSURANCE ltd and to investigate the effect of risk monitoring on organizational performance at PRIME INSURANCE ltd. Moral hazard theory; stakeholder theory and theory of optimal capital structure were employed during the current research to enable more understanding the relationship between risk management and performance of indemnification corporations. Explanatory research design was engaged to allow the investigator to come up with understanding into a specific subject. The participants of this research involved 82 respondents of PRIME INSURANCE, located in Rwanda, headquarter Kigali. In this research dissertation, the researcher used a census for small populations as sample size determination, this approach was to use the entire population as the sample. Stratified sampling was involved by dividing the population into subpopulations that may differ in important ways. This research dissertation used both primary and secondary data; for the secondary data, the researcher reviewed books, articles and documents from university library and other libraries in Kigali relate to the risk management and insurance company performance; secondly the researcher used questionnaire as a major source of primary data collection. This research dissertation initially employed the test-retest reliability as a type of answers the question, to determine whether the scores would be stable over time. The correlation coefficient in this research dissertation was measured on a scale that varies from + 1 through 0 to – 1. Complete correlation between two variables were expressed by either + 1 or -1. The findings showed that risk identification had significant impact on performance of PRIME INSURANCE, this was expained by regression analysis of the value of 0.3825 at the probability value less than 0.05.Secondly, there was a positive significant relationship between risk assessment and performance of PRIME insurance, this was explained by the regression analysis of 0.3642 and the probability of less than 0.05.Thirdly, there was a positive and significant relationship between risk mitigation and performance of PRIME, this was explained by the regression analysis of 0.5542 and the probability value less than 0.05 and finally there was a signficant relationship between risk monitoring and performance of PRIME insurance. There was a positive significant relationship between duration establishment and project performance, this was explained by the value of R2of 79.2% and the probability of less than 0.05. These findings suggest that, once respected, management of these approaches can have a considerable impact on the success of performance of PRIME insurance.