A Survey Of Critical Success Factors Of Enterprise Risk Management Among Commercial Banks In Kenya
Makunyi, Anisetu R J
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The financial industry has always been affected by unsystematic changes such as changes in the economic situation, political changes, social changes and systematic risk such as internal controls, corporate governance and information technology systems as well. ERM implementation will have to overcome multiple inherent challenges like strong support from top management, sufficient resource in terms of cost and trained professionals, expert knowledge in risk management and the continued focus on the implementation without losing steam in the middle, (Nielson et al. (2005). This study endeavored to ascertain the critical success factors enterprise risk management among commercial banks in Kenya. The study adopted a descriptive research determines and reports the way things are and attempts to describe such things as possible behavior, attitudes, values and characteristics, (Mugenda & Mugenda, 2003). The population for this study was all 44 Commercail banks in Kenya. Primary data was gathered and generated for the project at hand directly from respondents mainly using questionnaires. The researcher used a questionnaire as data collection instrument. The data collected was run through various models so as to clearly bring out the various critical factors influencing ERM among commercial banks. Logit model was used to analyze the regression equation. The study revealed that that top management commitment, organization culture, risk culture, training and technology affect implementation of Enterprise Risk Management in commercial banks to a very great extent. The study establish that IT plays a key role in achieving an organization’s objectives and organizations need to consider IT as an important factor in the face of increasing competition. The study established that organization structure affect implementation of Enterprise Risk Management in commercial banks to a great extent.