AN EVALUATION OF THE EFFECT OF RISK MANAGEMENT PRACTICES ON RETURNS ON INVESTMENT AMONG MEMBERS OF FARMERS MULTIPURPOSE COOPERATIVES SOCIETIES IN ANAMBRA STATE

Nwafor, Grace, Obiageli (2024) AN EVALUATION OF THE EFFECT OF RISK MANAGEMENT PRACTICES ON RETURNS ON INVESTMENT AMONG MEMBERS OF FARMERS MULTIPURPOSE COOPERATIVES SOCIETIES IN ANAMBRA STATE. Journal of Economics, Finance and Innovation, 3 (4). pp. 8-23. ISSN 2181-3299

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Abstract

This study investigates the impact of risk management practices on returns on investment (ROI), proxied by revenue, among members of farmers' multipurpose cooperatives in Anambra State, Nigeria. Employing a quantitative approach, the research analyzes the effects of five key risk management dimensions: risk identification methods, risk assessment techniques, risk mitigation strategies, risk monitoring and review, and organizational culture towards risk. A sample of 218 respondents was surveyed, and data was analyzed using Ordinary Least Squares (OLS) regression. Findings reveal statistically significant relationships between several risk management practices and returns on investment. For instance, the regression coefficient for Risk Identification Methods was β = 0.15 (p<0.05), indicating a positive and statistically significant association. Similarly, Risk Assessment Techniques demonstrated a positive and significant impact (β = 0.22, p<0.01). Risk Mitigation Strategies also exhibited a strong positive influence (β = 0.18, p<0.05). Risk Monitoring and Review showed a marginally significant positive association (β = 0.08, p<0.10). Conversely, Organizational Culture towards Risk showed a non-significant relationship with returns on investment (β = 0.03, p>0.10). These results suggest a positive correlation between robust risk management practices and improved revenue among cooperative members. The study highlights the importance of effective risk management strategies for enhancing returns on investment in agricultural cooperatives. Recommendations include promoting training programs on risk identification, assessment, and mitigation, fostering a culture of risk awareness within cooperatives, and implementing regular risk monitoring and review mechanisms.

Item Type:	Article
Subjects:	T Technology > TX Home economics
Divisions:	Postgraduate > Master's of Islamic Education
Depositing User:	Journal Editor
Date Deposited:	14 May 2025 05:35
Last Modified:	14 May 2025 05:35
URI:	http://eprints.umsida.ac.id/id/eprint/16056

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