MANAGEMENT RISK-TAKING BEHAVIOR ON THE GROWTH OF OCCUPATIONAL PENSION SCHEMES IN KENYA
Abstract
Successful companies take more risks. Risk-taking propensity is the tendency to take or avoid risks. We want senior management teams to inform organisations about the positive relationship between risk-taking tendency and individual risk-taking decision-making. Risk perception and propensity determine risk-taking. A higher risk tolerance reduces risk anxiety. Entrepreneurial companies often take on high-risk projects or borrow heavily to make money. A firm's willingness to enter unknown markets, allocate major resources to operations with uncertain results, and incur large debt in anticipation of large gains is called market risk-taking (Edward & Utama, 2021). Personal attitudes include empathy, openness, authority, responsibility, and self-assessment. This psychological feeling may greatly impact entrepreneurial success. Knowledge-friendly attitudes encourage innovation, strategic risk-taking, creativity, and the ability to meet new threats. Entrepreneurship can be learnt with optimism. This study, aimed at establishing the influence of management innovativeness on the growth of occupational pension schemes in Nairobi City County, Kenya. This study used the Schumpeterian Innovation Theory. This study used a hybrid research design with quantitative and qualitative methods. A longitudinal descriptive survey was used in this study. All 809 Nairobi City County occupational pension systems were targeted. In Nairobi City County, Kenya, this study sampled all Kenya Retirement Benefits Authority occupational programs. 321 projects have fund values under 500 million Kenyan shillings, 275 between 500 million and 1 billion, 158 between 1 billion and 10 billion, and 55 over 10 billion. A biased stratified sampling procedure selected 267 of Nairobi City County's 809 pension schemes. One manager, preferably the Finance and Investments Manager, from each of Nairobi's 267. The study's findings demonstrate that the management's risk-taking behaviour has facilitated the institution's realignment with the continuously changing business landscape for pension schemes. The majority of respondents indicated that by adopting risk management, they have created a fully operational risk management department, supported by a comprehensive enterprise risk management framework and a pronounced risk appetite policy.
Keywords: Management Risk-Taking, Occupational Pension Schemes, Growth of pension schemes, Performance.
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