Effect of Internal Control Mechanisms and Risk Mitigation on Performance Optimization in Procurement and Supply Chains: A Case Study of World Vision Rwanda
Mutimunyuzwe Soleil and Joseph Akumuntu
University of Kigali
https://orcid.org/0009-0009-4299-5177
Email: mutimasol@gmail.com
Abstract: This study examined the effect of internal control mechanisms and risk mitigation on performance optimization in procurement and supply chains at World Vision Rwanda. The specific objectives were to assess the effect of internal control mechanisms on procurement and supply chain performance, examine the effect of risk mitigation on procurement and supply chain performance, and determine the combined effect of internal control mechanisms and risk mitigation on performance optimization. The study was guided by the COSO Internal Control Framework, Enterprise Risk Management (ERM) Framework, and Stakeholder Theory. The findings revealed that internal control mechanisms had a positive and statistically significant effect on performance optimization (B = 0.467, t = 5.122, p < 0.001). Similarly, risk mitigation had a positive and statistically significant effect on performance optimization (B = 0.502, t = 5.576, p < 0.001). The overall regression model was statistically significant (F(2,106) = 670.740, p < 0.001), with internal control mechanisms and risk mitigation jointly explaining 92.7% of the variance in performance optimization (R² = 0.927; Adjusted R² = 0.925). The findings demonstrate that effective internal controls and risk mitigation practices are important predictors of procurement and supply chain performance at World Vision Rwanda. The study recommends strengthening the regularity and follow-through of internal audits, establishing formal mechanisms for escalating high-priority procurement risks, improving routine supplier performance monitoring, and integrating internal control and risk-management reviews to enhance accountability, operational continuity, and performance optimization at World Vision Rwanda.
