Strategic Risk Management Practice by Kenya Revenue Authority
Abstract
Strategic direction for a business means understanding what drives the creation of value
and what destroys it. 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. The management of a business is about managing its risk
exposure and therefore it is essential to for a manager to be conversant with the types of
risk the firm is exposed to as the organization pursues its strategic objectives. The success
of an organization depends upon the risk management practices put in place by an
organization as it reduces earning volatility, maximizes value for shareholders and
promotes job security and financial security in the organization.
The objective of the study was to establish the strategic risk management practices in
Kenya Revenue Authority. The research design was a case study of Kenya Revenue
Authority. 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 was that relationship between risk management and
organization mission, there exist a structured and well documented risk management
approach, there was a link between the strategic plan and an understanding of all
organizational risks, there is a risk implementation team in the organization, risk was
identified by the process owners, guidance on risk identification is been offered, financial
health analysis is done in the organization, business objectives and performance measures
are adequately communicated, risk evaluation is carried out, internal risk control
framework exist and annual reports contain the internal reports.
The study recommended that the management of KRA should continue being at the
forefront in the management of risks in the organization, they should also continue
disseminating the information on evaluated results, the management should continue
managing the risks as it improves the performance of the employees.
Publisher
Universityof Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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