Internal Controls and Their Influence on Financial Risk Mitigation in Tanzanian Public Institutions: A Case of Tanzania Electric Supply Company Limited (TANESCO)

Abstract

This study examined the effect of internal controls on financial risk mitigation in the Tanzanian public sector using the case of Tanzania Electric Supply Company Limited (TANESCO). The study used a mixed-methods approach, collecting qualitative data through semi-structured interviews with 7 key stakeholders in internal controls and financial risk management. Quantitatively, the study collected data using standardised questionnaires with 30 participants. The findings revealed a significant relationship between internal controls and financial risk mitigation in TANESCO, emphasizing the crucial role of internal controls as key elements of financial risk mitigation frameworks. This research provides valuable insights into the effectiveness of internal controls in mitigating financial risk in public institutions. The study contributes to the understanding of the relationship between internal controls and financial risk mitigation. Also, these findings have important implications for policymakers, as they enhance financial risk mitigation practices in public sector organizations and provide valuable groundwork for future research in financial risk management.