Strategic Risk Management Practices and Organizational Performance at Kenya Commercial Bank: A Case of KCB Nairobi County.

Abstract

In the fast-paced, constantly-evolving world of business, organizations have the problem of making informed judgments regarding operational expansion and overall growth. Often, these decisions are intricate and multifaceted. However, regardless matter how many or how complex they are, it is imperative to comprehend the critical role that strategic risk management plays in achieving organizational performance. The purpose of the study was to examine strategic risk management practices and organizational performance at Kenya commercial Bank, case of KCB, Nairobi County. The study's objectives entailed finding out strategic risk management practices, establishing level of organizational performance of KCB and further relate strategic risk management practices and organizational performance at KCB, Nairobi County. The study was informed by network theory, expectation theory, and enterprise risk management theory. The study employed a descriptive research design. The study's population consisted all employees of KCB group The target group consisted of 46 middle and upper level managers from KCB at the Head office in Nairobi County. Since the study's target population was so small, a census technique was employed. The study employed a semi-structured questionnaire to collect data. The data collection tool's validity and reliability were assessed. Both descriptive and inferential statistics were computed using SPSS Version 27.0. The moral implications were considered. The results showed a strong positive relationship between organizational effectiveness and risk transfer. Furthermore, it was shown that risk avoidance contributed very little to the success of the company. Nevertheless, it was found that risk control had very little negative effect on the functioning of the company. Furthermore, it was discovered that risk retention considerably increased organizational performance. Lastly, government regulations had no impact because the association between the predictors and response variable remained same. The report recommended that KCB puts in place robust risk transfer and retention policies in order to enhance organizational performance. In order to safeguard banks from risks related to the banking sector, the report also recommended that the Central Bank of Kenya offer policy interventions in the form of strategic risk management techniques.