The effect of technology on risk management practices by fund managers in Kenya
In many businesses today, technology is considered the most strategic capital investment and information, important for the success of an entity. Business technology has advanced tremendously over the century. Some of these notable changes in the fund management environment are use of internet, clouding, information technology, computing intelligence, virtualization and software and hardware developments. However, despite all this developments, technology has inducing another aspect of technological risk which needs to be managed. Therefore, this study examined the effect of technology on risk management practices in the case of fund managers in Kenya. To answer the research questions, the study used a descriptive research design. The population of the study comprised of the 20 registered fund managers in Kenya. Due to small population size, the study used a census for data collection. The study used primary data which was collected through the use of questionnaires. The data collected was analyzed using descriptive and inferential statistics using the statistical package for social studies. The study findings established technology has a negative and insignificant relationship with risk management whereas training and compliance had a positive and insignificant relationship with risk management practices. Effective data management was found to have a positive and significant relationship with risk management practices. The study concluded that technology, training and compliance and effective data management influences risk management by Fund managers in Kenya. The study recommends that fund managers should regularly carry out technological risk audit risks to establish the effect of technology on risk management practices.