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Esther Turuga

Jomo Kenyatta University of Agriculture and Technology, Kenya

E-mail of the Corresponding Author: https://mail.google.com/mail/u/0/images/cleardot.gif This e-mail address is being protected from spambots. You need JavaScript enabled to view it


Dr. Allan Kihara

Jomo Kenyatta University of Agriculture and Technology, Kenya


CITATION: Turunga E. & Kihara, A. (2017). Effect of Risk Management Practices on Supply Chain Performance of Kenya Wine Agencies Limited. International Journal of Human Resources and Procurement. Vol. 6 (5) pp 378- 397.



The purpose of this study was to establish the effect of risk management practices on supply chain performance of Kenya Wine Agencies Limited. The study specifically looked at the effect of risk identification, risk analysis, risk monitoring, hedging on supply chain performance of Kenya Wines Agencies Limited. This study was reinforced by risk management theory, systems theory, theory of constraints and Supply Chain Operations Reference (SCOR) model. This study adopted descriptive research design. The population of this study included employees from the supply chain division of KWAL. The study adopted a stratified random sampling since the population of the study heterogeneous. Therefore the sample size consisted of 96 employees. The study used primary data sources. Five-point Likert scale, where each item has five response categories, ranging from ‘strongly disagree’ to a ‘strongly agree’ was utilized. The questionnaire was administered through drop and pick-later method to the sampled respondents. After data collection, the filled-in and returned questionnaires was edited for completeness, coded and entries made into Statistical Package for Social Sciences (SPSS version 20). The regression results revealed that risk management practices (risk identification, analysis, monitoring and hedging against risk) significantly affected supply chain performance. The study recommended that Kenya wine agencies limited should frequently and continuously conducts pre-screening of suppliers’ capacity and also conducts periodic procurement analysis as well as carrying out SWOT analysis frequently so as to improve its supply chain performance. The study also recommended that KWAL should conduct risk analysis like continuous assessment risks, frequent cost analysis of potential risks and ranking of risks in their order of priority since that will lead to a positive effect in the performance of supply chain operations.

Keywords: Risk Identification, Risk Analysis, Risk Monitoring, Hedging and Supply Chain Performance


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