Purpose: This study aimed to examine the impact of financial risk management practices on the performance of horticultural firms in Kenya. The research sought to identify the effectiveness of risk identification, assessment, control mechanisms, and diversification strategies in improving organizational performance.

Materials and Methods: A descriptive survey design was adopted, targeting 140 respondents from 35 horticultural firms, including accountants, customer relations officers, human resource officers, and production managers. Data collection utilized structured questionnaires distributed and collected through a drop-and-pick system. Statistical analysis included descriptive statistics and bivariate linear regression to assess the relationship between financial risk management practices and organizational performance.

Findings: The study revealed a statistically significant positive relationship between financial risk management practices and the performance of horticultural firms, with a regression coefficient of 0.376 and a p-value of 0.000. Key findings highlighted that 71.6% of respondents agreed their firms analyzed risks to assess impacts, and 69.9% indicated the presence of robust risk control mechanisms. However, only 49.6% reported having a regularly reviewed risk register. The findings underscore the critical role of financial risk management in mitigating financial volatility and optimizing organizational outcomes.