Strategic Risk Management as a Driver of Service Delivery in Public Water Utilities: Empirical Evidence From Uganda

Abstract

This study examined the effect of strategic risk management on service delivery in public water utilities, using the National Water and Sewerage Corporation (NWSC) in the Kampala Metropolitan Region as a case study. Grounded in Agency Theory, the Resource-Based View, and the Balanced Scorecard Theory, the research employed a descriptive cross-sectional design with a mixed-methods approach. Data were collected from 481 respondents comprising NWSC managers and customers through structured questionnaires and semi-structured interviews. The findings revealed that strategic risk management is the strongest predictor of service delivery (β = 0.425, p < 0.001), explaining a substantial proportion of the variance in service delivery. The descriptive statistics demonstrated strong agreement among respondents, with an overall mean of 3.94 (SD = 0.88). The highest-rated item was "NWSC maintains reliable service delivery even amidst unexpected operational or external challenges" (M = 4.06, SD = 0.88), followed by "NWSC proactively identifies and communicates potential service risks before they cause major disruptions" (M = 3.99, SD = 0.86). However, the item "NWSC's operational policies and procedures result in consistent and professional service delivery to the public" (M = 3.81, SD = 0.87) received the lowest mean score, indicating a gap between macro-level risk management and consistent frontline service quality. The study concludes that strategic risk management constitutes a critical organizational capability through which public water utilities enhance resilience, protect strategic resources, and consistently deliver high-quality services. The findings provide empirical support for the integration of enterprise risk management into strategic planning and operational decision-making in public utilities.