MBA Theses and Dissertations (2015)

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Browsing MBA Theses and Dissertations (2015) by Author "Gaicuhie, Charles Thuo"

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    Effect of inland petroleum transport risk management strategies on financial performance of oil marketing companies in Kenya
    (Strathmore University, 2015) Gaicuhie, Charles Thuo
    Risk management is an integral part of day-to-day business activities in the energy industry. Oil and gas companies face a myriad of risks in today's global marketplace. Uncertainty in the inland oil transport is expensive, and its impact affects the way its customers are served. Despite increase in use of risk management strategies in oil marketing companies’ management, there have been scanty empirical studies that have focused on determining the effect of inland petroleum transport risk management strategies on financial performance of oil marketing companies in Kenya. The objective of this study was to establish effect of inland petroleum transport risk management strategies on financial performance of oil marketing companies in Kenya. The study adopted descriptive survey research design to describe the general characteristic of the study population and show the relationship between the dependent and independent variables. The descriptive research design was deemed fit to establish the effects of inland transport risk management strategies on financial performance of oil marketers in Kenya. The target population was 50 oil marketing companies in Nairobi with activities on transporting and marketing petroleum products in Kenya. The study had a sample size of 75 respondents who were managers, risk management officers, depot managers, financial officers and operation officers selected using stratified sampling technique. The study collected primary data using questionnaires. The data was then analyzed using descriptive and inferential statistics. Descriptive statistics included frequency, percentages, means and standard deviations. For qualitative data, which was mainly gathered from open ended questions a qualitative data checklist was developed. Inferential statistics involved multiple regression model which was applied to determine effects of inland transport risk management strategies on the financial performance of oil marketing companies in Kenya. The study established that there existed a significant positive relationship between risk based internal audit and financial performance of Oil marketers companies. The study found that risk identification had a significant positive impact on financial performance of Oil marketers. Assessment of risks and internal audit annual plans are significant risk based audit items in inland oil transport to the achievement of financial goals. The study revealed that there existed a significant positive relationship between risk planning and financial performance of Oil marketers and a significant positive relationship between portfolio quality and financial performance of Oil marketers.