Conducted by BatStateU
, Started on 2016 -
Completed on 2017
Completed
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This research mainly focused on the assessment of risk management process of selected credit institutions in Batangas City. It specifically determined the demographic profile of the business in terms of its nature, types of loans, number of employees, and years of operation, and how these institutions’ risk management process can be assessed in terms of risk identification, risk assessment, risk response development, and risk response control. Furthermore, this study aimed to determine the significant differences on the assessment of the respondents when grouped according to profile variables. Specifically, the main objective of this study is to provide possible strategies on how to improve the efficacy and effectiveness of the risk management process of selected credit institutions in Batangas City. The researchers adopted descriptive method and used random sampling as their sampling technique. They formulated questionnaires which were used to collect relevant data related to the topic. A dry run in Lipa City was first conducted to test its validity in producing reliable information and it scored 83%. They began the actual survey by visiting those selected institutions. When the researchers noticed that most of the respondents chosen through random sampling were not accepting their questionnaire, they consulted their statistician over what remedy can be done because there was a possibility that if only 89 questionnaires were distributed while considering that there are a lot of them already rejected, the result would no longer be reliable. With that being said, they were advised to collect at least 80 percent of the total respondents. Ninety four questionnaires were actually distributed but only 80 of them came back which is equivalent to 90 percent of the total respondents. After the survey, data collected were interpreted through the use of Percentage, Relative Frequency, Weighted Mean, One way analysis variance, and Likert Scale. Based from the findings of the study, 80 out of 89 respondents answered the distributed questionnaires, which were equivalent to 90 per cent. Among the four variables based on their computed composite mean, risk response control got the highest with 3.70, followed by the risk identification with a 3.53 composite mean, risk assessment with 3.51 composite mean, and risk response development having 3.42. Results also revealed that there is a significant difference on the assessment of risk identification when grouped according to profile particularly form of the business, whereas the findings revealed that there are no significant differences in the assessment of risk assessment, risk response development, and risk response control. The researchers therefore, conclude that the risk management process of selected credit institutions was somehow effective but not that efficiently implemented. They recommend to follow the proposed strategies which have the objectives to adopt a common language and to define each risk to have a common understanding of the perceived risks, evaluate and assess risks based on its relative impact by qualitative or quantitative analysis, define methodologies which will be used to design, build, test and integrate the capabilities to deliver the outcome and track actual progress, improve enterprise performance and establish sustainable competitive advantage.