dc.description.abstract | The key object of this research exercise was to determine the relationship between Enterprise Risk Management and financial performance of commercial banks in Kenya. The study employed a descriptive research whereby such attributes as attitudes, values and behavior are established, reported and clearly described, (Mugenda & Mugenda, 2003). The population for this study was 24 Commercial banks in Kenya. The mode of data collection was primarily through use of questionnaires and secondary means as well. The data collected was run through various models so as to clearly bring out enterprise risk management practices among commercial banks. Logit model was used to analyze the regression equation. The Enterprise Risk Management practices that were analyzed included: risk and control assessment; assessment of key risk indicators, incident management, and compliance of both internal and external regulations. It was found that the determination of the bank‘s key risk indicators was the most important Enterprise Risk Management practice by the Kenyan commercial banks surveyed. The bank assesses soundness of its financial position to determine its vulnerabilities and develop plans to minimize their impact and also the analysis of the bank‘s financial health is multifaceted and includes such areas as liquidity, solvency, repayment capacity, profitability, and financial efficiency. | en_US |