Risk identification and financial performance of telecommunication companies in South Sudan. A cross-sectional study.
DOI:
https://doi.org/10.64792/egzh8c47Keywords:
Risk management, financial performance, Enterprise Risk Management, Telecommunications, Profitability, Liquidity, South Sudan, DigitelAbstract
Background:
Risk identification is a fundamental component of enterprise risk management that enables organizations to recognize potential threats and opportunities that may affect the achievement of their objectives. This study examined the relationship between risk identification and financial performance at Digitel South Sudan Ltd.
Methodology:
The study adopted a cross-sectional correlational research design using both quantitative and qualitative approaches. A sample of 108 respondents was selected from a target population of 150 employees using simple random and purposive sampling techniques. Data were collected using structured questionnaires, key informant interviews, observation checklists, and document review. Quantitative data were analyzed using descriptive statistics, Pearson correlation, and simple linear regression in SPSS Version 23, while qualitative data were analyzed through thematic content analysis.
Results:
The majority of respondents were male (64.4%), aged 30–39 years (43.3%), and held Bachelor's degrees (56.7%). Respondents generally agreed that Digitel had effective risk identification practices, with an overall mean score of 3.95. Pearson correlation analysis revealed significant positive relationships between risk identification and Return on Assets (r = 0.612, p < 0.001), Net Profit Margin (r = 0.584, p < 0.001), and Liquidity Ratio (r = 0.497, p < 0.001). Regression analysis showed that risk identification significantly predicted financial performance (β = 0.657, p < 0.001), explaining 39.4% of the variation in financial performance (R² = 0.394).
Conclusion:
Risk identification has a strong positive and statistically significant effect on the financial performance of Digitel South Sudan. Effective identification of operational, financial, and regulatory risks enhances profitability, liquidity, and overall financial stability.
Recommendation:
Digitel should strengthen and institutionalize continuous risk identification systems through automated monitoring tools, regular risk assessments, and enhanced management involvement to improve financial performance and organizational resilience.
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