Effects of Enterprise Risk Management on Customs Performance at the Port of Mombasa in Kenya
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Date
2019
Authors
Owino, Millicent
Mumia, Benn MINCU, CPA.K
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Enterprise Risk management is very important in ensuring customs compliance. Customs
authorities are majorly focused on putting in risk management initiatives to ensure customs
compliance in international trade transactions, and also to improve performance. Despite risk
management being fundamental in ensuring customs compliance, cases of non-compliance
have been reported across the world. In Kenya, smuggling is a major problem as well as other
cases of misdeclaration in import and export clearance. The study sought to establish the effect
of enterprise risk management on customs at the Port of Mombasa, Kenya. The study was
guided to establish the effects of risk identification, risk analysis and risk treatment on customs
performance at the Port of Mombasa, Kenya. The study was based on contingency theory,
prospect theory and coordination theory. Descriptive cross-sectional survey research design
was utilized. The study targeted 200 customs staff in KRA Customs and Border control
department. A sample of 134 customs staff took part in the actual study. The respondents were
selected through stratified random sampling. A pilot study was conducted to test the reliability
of the research questionnaire and also ensure its validity. Face validity and content validity of
the research questionnaire was ensured through consultations with the research supervisor. The
reliability of the research questionnaire was tested using the Cronbach„s alpha coefficient. Data
was collected using self-administered structured questionnaires. Frequencies, percentages,
means and standard deviations constituted the descriptive statistics that were used by the study.
Multiple regression analysis and Pearson product moment correlation comprised the inferential
statistics for the study. The researcher found, out that Risk identification strategies had a
significant effect on Customs Performance at the port of Mombasa, Risk identification
strategies affected the customs performance by (β1=0.313), The risk analysis practices adopted
by the customs at the port of Mombasa have a strong positive effect on the customs
performance. Risk Assessment resulted to (β2=0.237), improvement on the Customs
Performance. Risk treatment strategies, have a very strong effect on the performance of the
Customs at the port of Mombasa inferring that a unit increase in Risk Treatment Strategies ,
resulted to improvement in Customs Performance by (β3=0.305), From the findings, the
researcher recommended on the following; More resources should be allocated towards risk
identification procedures, to advance the performance of risk management department,
Interconnectivity of risk assessment information systems with other Partner Government
Agencies so as to improve the assessment of risks and more and efficient risk control measures
should be employed which are backed by a sound and strong ERM policies.
Description
Keywords
Enterprise Risk Management, Customs Performance, Customs risk, Risk Assessment, Risk Treatment
Citation
Owino, M. (2019). Effects of Enterprise Risk Management on Customs Performance at the Port of Mombasa in Kenya (B. Mumia, Ed.) [Review of Effects of Enterprise Risk Management on Customs Performance at the Port of Mombasa in Kenya].