Factors influencing the development of risk management strategies by Safaricom Limited
The operating environment of any profit making firm is exposed to various risks which if not managed would result in revenue leakages and fraudulent actions. Telecommunication firms have to continuously invest expertise and effort in risk management programs. These programs should be in line with the overall aims and objectives of the firm. The objective of the study was to determine the factors influencing the development of risk management strategies in Safaricom Limited. The study adopted a case study design and the researcher conducted the interviews. The interviewees were the managers in risk management division in Safaricom. Content analysis was used to analyze the data. From the findings, the study concluded that Safaricom Limited does an assessment of its risk profile followed by an evaluation of its risk policy. The company considers its level of risk tolerance in developing its strategy. The company considers the prevailing and future economic environment, existing mitigation strategies in place and potential return on taking a given risk. Risk management is embedded both at the strategic and management level and furthermore, it is everyone’s responsibility at Safaricom. The management normally develops risk management strategies from past events as not all outcomes are predictable. In developing its risk management policy, Safaricom limited have an operational Risk management framework that includes Business Continuity Plan and a Disaster Recovery Plan. The pros and cons of each strategy being considered are carefully balanced when being considered for implementation.