| dc.description.abstract | In the present day business context, all business entities need to prepare themselves to
cope with crises unlike in an ideal world where managers would identify all possible
threats that could happen to them and thus develop a contingency plan for each of these
sources of crisis. Therefore, the capability of an organization to flourish in the face of
risks that either bring forth opportunities or threats is a major sign of its ability to
maintain competitive advantage. This study sought to determine the influence of
enterprise risk management on the strategic management process at Kenya Power and
also establish the challenges faced by the organization in managing enterprise risk. The
study adopted a case study research design whereby the the data collection tool was an
interview guide. Content analysis was used to analyze the qualitative primary data which
had been collected by conducting interviews and secondary information from the
organization. The findings from the study were that the risks facing the organization
broadly include Legal/regulatory/contractual risks, Engineering/technical/ICT,
Operational/management, Natural/environmental, Safety/security/health and political
risks. The dependence of the company on hydro power and government interference on
policy issues were operational risks facing the organization as well. The enterprise risk
management process of an organization was found to be affected by a number of factors
and these factors included mandate from the top, determination and assessment of risk
process, operation of the control framework,the periodic reporting and analysis process of
the firm. The top management of an organization was found to play an important role in
the risk management process of the firm since they will be expected to incorporate the
risk assessment process in the overall strategy of the firm as well as make it part and
parcel of any decision being made in the organization. The study recommended that the
board of directors and management should have a reasonable assurance that they
understand to what extent the entity’s strategic objectives are being met or affected,
ensure that operations objectives are met, that the entity’s reporting is reliable and that all
applicable laws and regulations are being complied with. | en |
