RISK MANAGEMENT TECHNIQUES AS A TOOL TO IMPROVE ORGANISATIONAL EFFICIENCY OF MANUFACTURING INDUSTRIES IN NIGERIA

K. A. BANJO; O. I. AKOSILE

K. A. BANJO Department of Insurance and Actuarial science, Lagos State University of Science and Technology, Lagos.
O. I. AKOSILE Department of Business Administration and Management, Lagos State University of Science and Technology, Lagos.

Keywords: Risk Management, Organizational Efficiency, Economic Growth, Manufacturing Industries

Abstract

The declining trend in Nigeria's Gross Domestic Product (GDP) and the organizational shortfall caused by poor risk management in manufacturing companies necessitate the immediate attention of the researchers. This study, therefore, examined how the organizational efficiency of the manufacturing sector can be enhanced via proper risk management methods and their resultant effect on Nigeria's economic growth. To accomplish the study's objectives. The survey research method was used in this study, which used both primary and secondary data. The statistical software for social sciences (SPSS) was employed for data analysis. At a 5% level of significance, Hierarchical Regression Methods were utilized to test hypotheses. This study found that risk identification has a significant effect on organizational efficiency; risk assessment has a significant effect on organizational efficiency and risk management and organizational efficiency has a significant effect on GDP. Based on the study's key findings, it was stated that risk management and organizational efficiency are determinants of economic growth in manufacturing sectors in Nigeria. Accordingly, the study recommended that efficient risk management programs should be incorporated into the manufacturing sectors' operations, cultures, methods, and practices to ensure organizational productivity and financial growth.