ABSTRACT

The study investigates the impact of risk management on organizational performance in Ministry ofWorks Umuahia Abia State. The specific objectives were to: examine the impact ofrisk management on organizational performance; ascertain the relationship between risk management and organizational performance and to determine the relationship between risk management and economic activities ofthe organization. The total population of400 staffof Ministiy ofWorks. Tai o yamme were adopted to realize a total of200 sample size in the study. The study adopted survey design and random sampling technique were also adopted. Primary data sourcedfrom distribution ofquestionnaires to 200 staffofMinistry of Works Umuahia Abia State, Nigeria were usedforthe study. A test-re-test was conducted to ensure validity and reliability of the data. The data were presented using descriptive statistics such as 5 point Likert scale. The hypotheses were tested using Chi-Square and correlation coefficient model (SPSS). The resultreveal that majority ofthe respondents with 41.29% strongly agree that risk management impacts on organization performance to a very large extent; majority of the respondents rate the relationship between risk management and organizational performance positive with 81.98%; majority of the respondents' rate the relationship between risk management andeconomic activitiespositive with 75.00%; 43.60% ofthe respondentsstrongly agree that management/operational risk has a veiy strong impact on organizational performance; 56.76%> ofthe respondents strongly agree that there is a very strong impact between environmental risk management and organizational performance; 51.16% of the respondents ’ strongly agreed that legal risk management affects organizational performance. From the empirical result, since Chi-square (X2) calculated - 24.6156 and Chi-square (X2) tabulated = 15.507, thus, risk management has significant impact on organizational performance in Ministry ofWorks Umuahia, Abia State; there is positive relationship between risk management and organizationalperformance in Ministry of Works Umuahia, Abia State, Nigeria. There is direct relationship between risk management and economic activities ofthe organization. It was recommended that the top management cadre in the public sector needs to conduct assessments of the possible risks occurring during tendering and contract managementprocesses and be able to devise mitigation strategies. Thisshould be done thi ough formulation and implementations of dynamic risk management policies which helps to smoothen daily activities in the Ministry. The implementation ofrisk management will improve performance and enhance shareholder value by identifying, evaluating, monitoring and controlling all risks that can hinder the organizationfrom achieving its set objectives.