Main Article Content
In the quest for competitive advantage and higher profitability, financial institutions have focused on accountability. For instance, Savings and Credit Co-operative Societies (SACCOs) have been at the forefront in seeking competitive advantage through enhanced accountability. Effective internal audits help SACCOs to identify and manage risks, improve their operational efficiency, and ensure compliance with regulations and best practices. Despite the presence of internal auditors who review the organization’s internal control systems, some SACCOs experience liquidity problems and loss of funds through non-performing loans. The purpose of this study was to investigate the impact of risks evaluation on the financial outcomes of SACCOs in Meru County, Kenya. The study utilized descriptive survey research. The investigative research focused on 42 SACCOs that have operated in Meru County for a minimum of ten years. The study was a census. Data was gathered through a structured questionnaire. Statistical Package for Social Sciences (SPSS - Version 24) was utilized to analyze data. The researchers used a simple linear regression model and Pearson product-moment correlation to examine the relationship between SACCOs' financial performance and risk assessment. The findings indicated a significant relationship between risk assessment and financial performance of SACCOs in Meru County. It was concluded that effective risk assessment can help SACCOs to reduce operation costs, improve their efficiency, and enhance their financial outcome. The management of SACCOs should implement effective risk assessment policies to mitigate risks, reduce operational costs and enhance financial performance. The findings of this study are anticipated to help SACCO management, the members, and the regulator to appreciate the importance of quality audit systems in minimizing operations costs and mitigating risks.
This work is licensed under a Creative Commons Attribution 4.0 International License.
I/We agree to transfer the copyright of this manuscript to the International Journal of Professional Practice (The IJPP) in the event that the manuscript is published in the Journal.
I/We give the undersigned authors of the manuscript have made the following declaration:
(a) That I/We have made substantial contribution during the conception and design, or acquisition of data, or analysis and interpretation of the data,
(b) That I/We have participated in drafting the article or revising it critically for important intellectual content,
(c) That I/We have read and confirm the content of the manuscript and have agreed to it,
(d) That I/We have participated sufficiently in the work to take public responsibility for appropriate portions of the content of the paper,
(e) That I/We give guarantee that the content of the manuscript is original, and has not beenvpublished elsewhere and is not currently being considered for publication by another journal.