RISK MANAGEMENT PRACTICES IN BREAD FACTORIES: AN EMPIRICAL STUDY FROM ENUGU, NIGERIA

Abstract

The bread-baking industries face several risks that can negatively impact their operations, financial performance, and public health. This study adopted a survey design approach to analyze risk management in 60 bread factories in Enugu State, Nigeria. Primary data were generated with the aid of a semi-structured questionnaire and analyzed with both descriptive and inferential statistics. Results revealed that bread factories commonly use production (66.7%), supply (45.0%), and financial (36.7%) risk management strategies. Key factors influencing the choice of strategy include ownership structure (-1.018241), factory size (0.003131), market distance (0.034149), and access to credit (0.043334 for supply and 0.043258 for financial risk management), as well as location (0.485676 for supply and 0.493554 for financial risk management). Significant constraints to effective risk management were insufficient technical knowledge (2.98), lack of documented policies (2.77), inadequate financial resources (2.80), and difficulty accessing insurance (2.55). The study recommends workforce training, industrial cooperation, and better financial and insurance access to enhance sector resilience.