Kiptis, Raphael2019-10-142019-10-142012The Effects of Operational Risks on Organizational Performance: The Case of Floricultural Sector in Kenya By: Raphael Kiptis, Daystar University, 2012https://repository.daystar.ac.ke/handle/123456789/3026Operational risk is one of the risks that businesses face and seek to mitigate. Operational risk is related to losses resulting from inadequate systems or controls, human error or management which includes causes from the broad categories of human failure and competitive action. Operational activities of the floriculture sector affect both the quality and the quantity of products. This study aimed at establishing the effects of operational risk in the performance of floriculture sector in Kenya. The objectives were: to find out the operational risks faced by floriculture industry in Kenya, to determine the effects of operational risks on organizational performance within the floriculture sector in Kenya, to establish the effectiveness of operational risk management strategies used in the floriculture sector in Kenya, and to establish the challenges faced by the floriculture sector in Kenya in the management of operational risks. This study adopted a descriptive research design. Respondents were drawn from Kenya Flower Council (KFC) registered flower farm. Questionnaire and interview were used as the primary data collection methods. Data collected using the questionnaire and was analyzed using Predictive Analytical Software (PASW). From the findings it emerged that the performance of floricultural sector was severely affected by operational risks. The operational risk management methods used were effective. The findings also revealed that risks were identified and measured in most flower farms. Finally, the study established that costs, lack of capacity and ignorance on operational risk management were the main challenges faced by flower farms in the management of operational risks.enOperational RisksOrganizational PerformanceFloricultural SectorKenyaThesis