Enterprise Risk Management and Firm Performance Amongst Financial Firms Listed at the Nairobi Securities Exchange
Abstract
In the recent past, there has been an approach to risk management where risk is
consolidated and managed for the entire organization at once unlike previously
where risk were managed per departments or per projects. Enterprise risk
management thus brings all the factors together to mitigate risks at once for the
firm. Firm performance on the other hand allows for measurement of growth on
the shareholders’ value. The study adopted two objectives of finding out the
existence of ERM practices amongst financial firms listed at the NSE and
determining whether there was a relationship or not between ERM and firm
performance amongst financial firms listed at NSE. The study used descriptive
research design and considered the entire population of the seventeen financial
firms listed at the NSE for a period of two years, 2017 and 2018. The study used
secondary data. The data collected was analyzed by SPSS using descriptive
statistics and Pearson’s correlation analysis. The study findings revealed that
whereas most firms adopted and disclosed the ERM practices in their annual
integrated reports, there was no significant correlation coefficient between ERM
and firm performance amongst financial firms listed at NSE.The study thus
recommends that the management of the financial firms listed at the NSE should
allocate very minimal resources in ERM implementation given that ERM has no
influence at all on firm performance.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1411]
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