RISK ANALYSIS AND ORGANISATIONAL PERFORMANCE IN SELECTED ENGINEERING FIRMS IN NIGERIA

Abstract

This study investigated the relationship between risk analysis and organisational performance in engineering firms in Nigeria. The business environment is dynamic and uncertain; hence business organisations require effective risk analysis to manage their operations and performance. The purpose of this study was to evaluate the effect of risk analysis on productivity, capacity utilization, and product quality. The methodology adopted was based on a quantitative research approach using a survey method. The sample consists of 315 staff from Mantrac Nigeria Limited, Cumis Africa, and Mikano International. The multistage sampling techniques of purposive sampling and convenience sampling were adopted for this study. The data collected were analyzed using descriptive statistics such as frequency distribution and simple percentages while inferential statistics through regression analysis was used to test the hypotheses. The result shows that risk analysis has a significant effect on the productivity of engineering firms; risk analysis has a significant impact on the capacity utilization of engineering firms and that risk analysis has a significant effect on the product quality of engineering firms. This study concluded that there is a significant positive relationship between risk analysis and organisational performance in engineering firms in Nigeria. On the basis of the findings and conclusion, the study recommends among other things that engineering firms should continue to do adequate and regular risk analysis that helps in taking appropriate business decisions for enhanced organisational performance.