This implies that risk identification contributes the most to the financial

This implies that risk identification contributes the

This preview shows page 43 - 46 out of 56 pages.

This implies that risk identification contributes the most to the financial performance of insurance companies in Ghana followed by risk mitigation, risk management program implementation & monitoring and risk assessment & measurement in that order. At 5% level of significance and 95% level of confidence, risk identification, risk mitigation, risk management program implementation & monitoring and risk assessment & measurement all significantly influenced the financial performance of insurance companies in Ghana. 2
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4.4 Discussion of Findings From the study, it was established that most insurance companies in Ghana had been in operation for a long period of time, and a majority of these companies had a wide branch network throughout the country. The implication is that these are large companies and hence face greater levels of risk in their operations due to operating in larger scales. According to the study, majority of the insurance companies had adopted various risk management practices in their risk management efforts. Being large companies with greater risk levels, it made economic sense for these companies to have a comprehensive risk management program. This could, therefore, explain why most of the companies had continued to be financially viable for longer periods. With regard to the various risk management practices adopted by the insurance companies, the study found that risk identification contributes the most to the financial performance of insurance companies in Ghana followed by risk mitigation, risk management program implementation & monitoring and risk assessment & measurement in that order. At 5% level of significance and 95% level of confidence, risk identification, risk mitigation, risk management program implementation & monitoring and risk assessment & measurement all significantly influenced the financial performance of insurance companies in Ghana. The study found risk identification to be the most significant in influencing the financial performance of Ghanaian insurance companies, followed by risk mitigation, risk management program implementation & monitoring and risk assessment & measurement respectively. This finding is consistent with practice as all risk management efforts should ideally start with identifying the risks facing the firm, before exploring ways to manage these risks. The fact that risk assessment and measurement ranked last in significance in influencing financial performance could be interpreted to imply that organizations may fail to assess and measure risks 2
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but still put in place measures to mitigate these risks. If these measures are well implemented, then the firm could still realize benefits in terms of improved financial performance. This is a good thing for the firm as not all firms have the technical capacity to assess and measure the impact of risks facing the firm. Companies can anticipate potential losses and still be successful in their risk management efforts. However, if a company is able to assess and measure the impact
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  • Spring '20
  • Dr. ASRAVOR

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