Critical Success Factors and Risk Management Procedures at Kenya Airports Authority
Abstract
In the recent past, there has been an increase in the number of airport accidents, fires
and associated risks in Kenya. Unfortunately, there is no known research that has
been undertaken in this area, thereby leaving a knowledge gap. It is on this basis that
research in this area was desirable. This research project was a case study research
design of critical success factors and risk management procedures at Kenya Airports
Authority (KAA). The objectives of the study were to; identify the risk management
procedures at KAA, determine the critical success factors in establishing the risk
management procedures at KAA, and identify the challenges facing the
implementation of risk management procedures at KAA. Data was collected using indepth
interviews
by the researcher. It was analyzed and presented by way of content
analysis. A total of seven out of ten top managers were interviewed. The research
findings found out that KAA adopted risk management procedures in line with the
provisions of The National Institute of Standards and Technology (NIST, 2004). It
summarized their risks and subsequent risk management procedures into nine
thematic risks including revenue generation, infrastructure and facilities, security, and
safety risks. Other thematic areas include; business process automation, employee
productivity and retention, environmental sustainability, customer service and
corporate image, and corporate governance and political interference risks. The
findings identified the critical success factors required to establish the risk
management procedures at KAA as leadership and commitment, communication,
organizational structure and culture, infrastructure and airport facilities, training, and
technology. The challenges were found to be political interference, financial
constraints, and inadequate land for expansion, leadership, technological and
environmental inadequacies. The research concluded that KAA requires intensifying
its efforts in establishing fool proof risk management procedures in all its thematic
areas. Also strategic leadership and commitment which was found to have the greatest
impact in risk management procedures requires a total overhaul especially in the
appointment of the Board. In addition land for expansion was found to be inadequate
for KAA. From the findings recommendations on theory and knowledge
development, policy guidelines, and management practice were noted. Among these
include the need to diversify revenue sources and the need to review contract periods
for CEOs. This study was not without limitations. Some of the managers interviewed
expressed fears in disclosing some sensitive finance, political, security and safety
concerns. Hence, the data provided could have been inconclusive thereby making the
applicability and generalizability not adequate across industry. The researcher
therefore recommends the following areas for further research; First; security
challenges posed by informal settlements to Airports in Kenya, and major political
challenges facing risk management at airports and strategic responses to the same, as
well as application of diversification strategy as a mitigation measure against revenue
risks facing KAA
Publisher
University of Nairobi, School of Business