Determining factors of the effectiveness of risk management systems in agricultural development projects in Benin

Abstract

The effectiveness of risks management systems depends on a number of internal and external elements in projects. The objective of this study is to analyze the determining factors of the effectiveness of risk management systems in agricultural development projects in Benin. To achieve this objective, thirty-one (31) agricultural development projects have been studied. Projects managers were taken as respondents in order to have the necessary informations on each project. Tobit regression was carried out to analyze the determinants of efficiency. The results showed that the organizational culture in risks management and the grant and grant/loan financing methods significantly and positively influence the effectiveness of risks management systems. On the other hand, the type of bilateral lessor negatively influences the effectiveness of risks management. These results enrich knowledge on the factors influencing the effectiveness of risk management systems in projects. This may lead projects managers and public authorities to pay particular attention to the factors identified for the implementation of projects in order to increase the level of effectiveness of their risks management systems.

Keywords: Effectiveness of risks management systems, determinants of effectiveness, organizational culture, type of project financing, method of financing projects

Classification JEL : O22

Paper type: Empirical Research