Abstract:
This research was intended to assess the impact of risk management strategies on the performance of manufacturing companies in Rwanda for the period of 2019-2022. It was carried out in BRALIRWA PLC as the case study with the following objectives; to examine the impact of risk management strategies on the performance of BRALIRWA PLC, to identify the risk management practices used by the management BRALIRWA PLC, to analyze the contribution of risk management to the performance of BRALIRWA PLC and to determine the relationship between the risk management and performance of BRALIRWA. The study reviewed literature related to risk management emphasizing the types , the components of risk management, the performance of BRALIRWA PLC and the relationship between risk management and performance of BRALIRWA PLC. Data collection tools where documentary review was used for secondary data.
Looking at the results presented in Table 4.18, BRALIRWA PLC had been able to earn in the period of our study, however, its earnings per share decreased in 2019. But on the other side, the company recognized a considerable increase from 2020 and 2022 and it hefted again in 2019.
Table 4.13 demonstrates the image of the return on equity ratio in BRALIRWA PLC from 2019 up to 2022. It is very important for any shareholder because it measures the return on the money they have put into the company. Even if new investors are interested in this, it is the ratio potential investors look at when deciding whether or not to invest in the company. From 2019 up to 2022 the ratio of Return on Equity is as following: 3.44%; 21.14%; 30.37% and 40.16% respectively.
This means that in 2018 the 100 RWF invested in BRALIRWA PLC, generated 18.53RWF of benefit; in 2019 investors got 3.44 RWF, in 2020 the 100 RWF invested in BRALIRWA PLC, generated 21.14RWF and in 2022 the 100 RWF invested in BRALIRWA PLC, generated 40.16 RWF. Therefore it is observed that marketing strategies applied in the company understudy have a strong link with this situation, since the return on equity depends on how much you sold. And of course high sales every time depend on better marketing.
