Effect of Risk Assessment and Management on Operational Performance of Kenya Revenue Authority

Abstract

Purpose: Operational performance require effective and efficient internal control mechanisms to check on any leakages, cost of revenue mobilization, negative variance concern on revenue targets among other aspects. The study explained the effect of risk assessment and management on operational performance of KRA Methodology/Approach: Causal design that outline the cause and effect association of risk assessment and management on operational performance. Targeted of finance employees, audit employees and investigation employees adding up to 253 of which 155 were sampled. Findings: Risk assessment and management reported a significant relationship with operational performance of Kenya Revenue Authority. The association was further reported as negative on basic element of risk factor. Implications: KRA management should assess risk and provide mitigation measures that could lead to operational performance. Risk decisions should be well made. That KRA should up audit exercises and conduct interim as well as final audits and make use of audit recommendations given to enable operational performance. Finally, the study recommends that KRA should always make financial reports in accordance to law and hence review them to establish areas to be improved for operation performance.