IMPACT OF RISK MANAGEMENT ON ORGANIZATIONAL EFFICIENCY (EKO ELECTRICITY DISTRIBUTION COMPANY LAGOS)
Abstract
This study examined the impact of risk management on organizational efficiency in Eko Electricity Distribution Company Lagos. The study discussed how power outage risks (interruptions) and regulatory risks (sanctions) affect organisational efficiency. The objective of the study was to determine the impact of the power outage and regulatory risk on the organisational efficiency of EKEDC. The study was conducted using the Survey method as a Primary source of data collection. Structured questionnaires were administered to 66 respondents through a web link who made up the sample size of the population. The Taro Yamane formula n= N/ (1+Ne2) is used to get the actual sample size based on the population at 95% confidence interval and 5% error margin. The hypothesis was tested using Spearman rank order (rho) and was analysed using SPSS 26. The study concluded thatPower outage risk has a significant impact on organisational efficiency with r = 0.701, a significance level of 0.000 less than 0.05. It also reveals that Regulatory risk has a significant relationship to organisational efficiency with r = 0.769 with a significance level of 0.000 less than 0.05. From the findings, the study recommends that EKEDC Lagos should look at policy implementation to reduce the risk of power outage. EKEDC should look at dialoging with the regulatory body (NERC) to reduce the impact of regulatory policies which affects the organisationl efficiency. These recommendations will help EKEDC to manage the risk causing impacting their organisational performance.
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