The impact of risk assessment on procurement management: a case study of moi teaching and referral hospital- eldoret, kenya

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Kampala International University.College of Economics and Management
Procurement of goods and services is a major budgetary component of many organization. particularly, those in public sector. The increasing complexity and uncertainty in the operating environment has increased the risks involved in procurement. There is a gro,,~ng need for robust mechanisms to assist them assess and manage these risks. Public institutions in East Africa lag behind in procurement risk assessment and management capacity. Efforts to develop and implement effective risk assessment systems are often hampered by weak policies and lack of quality data Procurement decisions are therefore taken mainly on the basis of minimal information, perceptions, past experiences and instincts. These has led to inefficiency and increased costs in procurement. This project paper presents a conceptual framework for identifying key areas for risk assessment and management and the pathways - and potential barriers - by which risk assessment can affect the efficiency and effectiveness of procurement systems. It also identifies methods used to evaluate the impact of risk assessment process in achieving key objectives of procurement - improved efficiency, and cost effectiveness, This paper focused the survey in a public institution, the Moi Teaching and Referral Hospital (MTHR) in Eldoret Kenya as a case study. It interrogated the procurement system with the objective of evaluating the impacts of risk assessment on procurement decisions at the hospital. Although the hospital recognized elements of risks in their procurement activities, their risks assessment policy and guidelines were weak and hardly applied, and the management information system was weak and manual. In addition, the personnel were not well trained and prepared to handle the intricacies of risk assessment thus unduly exposing the institution to avoidable and manageable risks. There is a call for an innovative and dynamic process of identifying risks, assess mg exposures and developing appropriate action plans to ensure they are managed in a way that will enable MTRH to meet its business objectives. The development and implementation of an effective policy/protocol on risk assessment has been recommended as a key issue. Training of relevant personnel and the involvement of all stakeholders in the process has been recommended. To enhance the planning, implementation, monitoring and evaluation capacity for risk assessment and management in the hospital, the existing management information system (MIS) should be strengthened and computerized.
Dissertation submitted to the school of Business And Management in partial fulfillment for the award of bachelors degree in Supplies and Procurement Management at Kampala International University
Risk assessment, Procurement, Management, kenya