Risk management strategies used by national bank of Kenya to enhance its corporate image
Over the last few decades, risk management has become an area of development in improving organization performance as well as creating good image of any organization. The area of financial services has been a business sector related to conditions of uncertainty where it is mostly exposed to risk. Every organization has a corporate image, whether it wants one or not. When properly positioned and managed, the corporate image will accurately reflect the organization’s commitment to quality, excellence and its relationships with its key constituents. Due to the understanding of risk management strategies to corporate image, this study aimed to establish risk management strategies used by NBK to enhance its corporate image. This was a case study since the unit of analysis was one organization. Primary data was collected using self-administered interview guides where the researcher booked an appointment with each manager upon where interviews on market segmentation strategies were conducted using an interview guide. The open-ended questions enabled the researcher to collect qualitative data. This was used in order to gain a better understanding and possibly enable a better and more insightful interpretation of the results from the study. The respondents of this study were staff working at NBK where the study targeted 4 respondents. A content analysis and qualitative analysis were employed. The data was then presented in a continuous prose as a qualitative report on risk management strategies used by NBK to enhance its corporate image. The study established that risk control approaches have been adopted by the bank, such as technological application which include Real Time Gross Settlement (RTGS) mode of payment and Know Your Customers and that RTGS is associated with less frauds compared to manual methods of payments and that Pre-printed cheques and customized cheques are less associated with fraud compared to manual cheques. The study further found that the risk financing and risk control strategies enhance the bank’s image where customers gain confidence with the NBK as well as developing positive attitude towards the bank. The study further found that the corporate image of the bank has improved significantly due to management commitment on implementation of risk management strategies adopted by the bank. The study concludes that banks have adopted risk management strategies such as risk financing and risk control that aim to mitigate risk occurrences and to enhance corporate image. The study further concludes that the risk financing and risk control strategies enhance the bank’s image where customers gain confidence with the NBK as well as developing positive attitude towards the bank.