| dc.description.abstract | This study sought to establish the effect of Credit Risk Strategies on improving quality of loan
portfolio at Real People Kenya thus enhancing the practice of strategic management and Risk
Management with a focus on Credit Risk Management. Based on the Evolutionary theory of
Strategic Management, the study established that effective Credit Risk Management strategy
cannot be an afterthought. Indeed, it requires a comprehensive effort involving all levels of the
organization, driven by top management. It was revealed that in order to succeed and thrive in
today’s rapid-paced and tumultuous market, the organization must realise the need for an
effective credit risk strategy to ensure portfolio quality. As a FI, Real People is in a business
environment in which technology, finance and regulation change too quickly and unpredictably
thus multi-year planning processes to address the outcome (risk) effectively. In this regards
Evolutionary strategic management attempts to accelerate strategy development by breaking it
into multiple smaller changes, with ongoing review enabling more rapid adjustments to the
original plan which is at the core of risk management. Evolutionary approaches, while not
optimal for a particular environment, allows the organization greater flexibility to adapt to
unexpected change. The study design was a case study of RP where the researcher interviewed
top management team. The qualitative data was analyzed using content analysis allowing the
researcher to draw inferences from the data collected. The results from this study indicated that
effectiveness of credit risk strategy in FI is critical for survival. The researcher recommended
that given importance of business continuity there is need for MFIs in this case RP to incorporate
greater emphasis on Credit Risk Strategies as part of the overall organization strategy. | en |
