Risk Management Approaches of Savings Cooperatives in Thailand

Abstract

This research has the objectives for: 1) Studying the work operation condition, risk management and problems and obstacles in management of savings cooperatives in Thailand; 2) Comparing the risk management characteristics of savings cooperatives in Thailand, classified according to the characteristics of organizations; 3) Studying about the management factors affecting risk management of savings cooperatives in Thailand and 4) Analysis and proposing the risk management approaches of savings cooperatives in Thailand. Sample group consists of 302 executives of savings cooperatives, classified by each occupation. The persons giving important information, consist of academicians in cooperatives, qualified persons in risk management, and executives in savings cooperatives, and qualified persons in cooperatives, total by 26 persons. In data analysis, descriptive statistics, one-way analysis, multiple regression analysis, content analysis and analysis of strength and weakness, opportunity and obstacles were used.

From the study, it was found that work operation condition and risk management of savings cooperatives in Thailand were in accordance with the practice of Cooperative Promotion Department and Cooperative Auditing Department. The problems and obstacles in management of savings cooperation came from management factors. The external factor of the cooperatives affecting the management of the savings cooperatives a lot was the regulation. The internal factor of the cooperatives affecting the management of the savings cooperatives a lot was finance. Analysis and comparison of risk management of savings cooperatives classified according to the characteristics of organization. It was found that the types of occupation group, the size of assets of cooperatives and the standard level of cooperatives were different. The characteristics of risk management of savings cooperatives were different. Studying about management factors affecting risk management of savings cooperatives, it was found that the external factors of the cooperatives affecting the risk management of savings cooperatives were politics and regulation. The internal factor of the cooperatives affecting the risk management of savings cooperatives was the personnel. For risk management approaches of savings cooperatives deriving from analysis of SWOT and TOWS Matrix, summarizes as three important approaches, if there are continuous serious practice which can reduce risk in other aspects, consist of approach No. 1, the risk management approach of savings cooperatives in strategy; it is proactive approach. The importance of strategy management is it will make the cooperatives to have covering point of view, having clear frame and work direction. The approach No. 2, the risk management approach of savings cooperatives in operation/ implementation. This is the protective approach. There is determination of approach to create success to the determined goal, by categorizing the importance and urgency of work in advance, so that related persons can work effectively. Approach No. 3, the risk management approach of savings cooperatives in law and regulation, remedial approach. In addition, as the cooperatives work under the frame of all laws, but it must not have conflict with the articles of the cooperatives and the Cooperatives Act having adjustment of provision, criteria, methods and conditions of work as appropriate and under the situation.