Strategic risk management practice by Kenya Revenue Authority
Strategic direction for a business means understanding what drives the creation of value and what destroys it. The capability of an organization to flourish in the face of risks that either bring forth opportunities or threats is a major sign of its ability to maintain competitive advantage. The management of a business is about managing its risk exposure and therefore it is essential to for a manager to be conversant with the types of risk the firm is exposed to as the organization pursues its strategic objectives. The success of an organization depends upon the risk management practices put in place by an organization as it reduces earning volatility, maximizes value for shareholders and promotes job security and financial security in the organization. The objective of the study was to establish the strategic risk management practices in Kenya Revenue Authority. The research design was a case study of Kenya Revenue Authority. The data collection tool was an interview guide. Content analysis was used to analyze the qualitative primary data which had been collected by conducting interviews and secondary information from the organization. The findings from the study was that relationship between risk management and organization mission, there exist a structured and well documented risk management approach, there was a link between the strategic plan and an understanding of all organizational risks, there is a risk implementation team in the organization, risk was identified by the process owners, guidance on risk identification is been offered, financial health analysis is done in the organization, business objectives and performance measures are adequately communicated, risk evaluation is carried out, internal risk control framework exist and annual reports contain the internal reports. The study recommended that the management of KRA should continue being at the forefront in the management of risks in the organization, they should also continue disseminating the information on evaluated results, the management should continue managing the risks as it improves the performance of the employees.
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