A Strategy To Reduce It Risks In Technology-Based Small And Medium-Sized Enterprises

Abstract

SMEs in Kenya contribute greatly to the country’s growing economy. However, they face numerous challenges in sustaining their growth. A number of these SMEs are Technology-based, having technology and computing at the center of their operations and performance. Hence, they face myriads of risks, throwing them into the drawing board to seek ways of managing such IT risks in their operations. The purpose of this paper is to identify a comprehensive risk management strategy, which will help in the mitigation of potential IT risks in technology-based SMEs. This would involve determining the key IT risks faced by the SMEs and recommending the implementation of proper IT risk assessment and management methodologies. The study used a descriptive research design, with a target population of 120 employees from Compulynx Limited, 15 employees from Conquest Capital and 5 employees from Faculty Solutions. From the expected respondents, only 80 participated fully in the study causing a response rate of 87%. The method of data collection included the use of questionnaires. The data analysis was done using SPSS with descriptive statistics and other inferential statistics. From the data analysis, the researcher concluded that technology-based SMEs are implementing risk reduction as the most comprehensive way of mitigating the risks, which they are exposed to. The companies employ strongly valid risk management practices in protecting businesses against risks.