Risk Avoidance Strategies and Performance of Total Uganda Limited

Abstract

Risk avoidance is a risk management technique that involves eliminating hazards, operations and exposures that would expose an organization’s valuable assets to operational risks. A risk avoidance strategy is aimed at deflecting as many threats as possible in order to avoid costly consequences and disruption of operations in the company. This paper examined the relationship between risk avoidance strategies and organizational performance of Total Uganda Limited. The study applied a descriptive study design using both quantitative and qualitative methods of data collection with a bias to quantitative methods. Quantitative data were collected using questionnaires from 126 respondents. Qualitative data were collected by means of interviews which were conducted with key informants. Analytical techniques of correlation and regression analysis were applied to the quantitative data, while content analysis procedure was applied to the qualitative data. Results confirmed that risk avoidance strategies significantly influenced organizational performance (r=0.689, p=0.000). Based on the findings, the study concluded that incorporating risk avoidance strategies within the operations of the company improved their performance. The study recommends that top management should clearly understand the risks arising from failure to collect credit transactions in their organization and put-up measures to safe guard against such risks, Total Uganda should foster productive efficiency by operating at least cost so as to keep the contingency reserve sufficient in order to improve its performance.