Effect of Internal Auditors’ Professionalism on Risk Management Performance of Commercial Banks in Kenya

Justin O. Ombui, Prof. Charles G. Kamau and Prof. Anwar Hood
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Justin O. Ombui: Technical University of Mombasa
Prof. Charles G. Kamau: Technical University of Mombasa
Prof. Anwar Hood: Technical University of Mombasa

South Sahara Multidisciplinary Journal, 2026, vol. 4, issue 1

Abstract: Effective risk management remains a strategic priority for commercial banks due to increasing exposure to fraud, cyber threats, operational failures, regulatory non-compliance, and financial instability. Although internal auditing is widely recognized as a critical governance mechanism for strengthening risk management, limited empirical evidence exists on the specific contribution of internal auditors' professionalism to risk management performance within commercial banks in developing economies, particularly Kenya. Guided by the Fraud Triangle Theory, Resource-Based Theory, Dynamic Capability Theory, and Agency Theory, this study examined the effect of internal auditors' professionalism on the risk management performance of commercial banks in Kenya. The study adopted a positivist research philosophy and a cross-sectional survey research design. Primary data were collected from employees drawn from internal audit, finance, and human resource departments across licensed commercial banks in Kenya using structured questionnaires, while qualitative data were obtained through interviews. Quantitative data were analysed using multiple regression analysis, whereas qualitative responses were analysed thematically. The findings revealed that internal auditors' professionalism exerts a positive and statistically significant influence on risk management performance. The results suggest that adherence to professional ethics, independence, objectivity, due professional care, and continuous professional development enhances the effectiveness of risk identification, assessment, monitoring, and mitigation within commercial banks. The study extends the application of contemporary internal auditing theories by demonstrating professionalism as a strategic capability for strengthening organizational risk management. The findings further provide practical insights for commercial bank executives, internal audit practitioners, regulators, and policymakers in developing competency frameworks and professional standards that enhance governance and organizational resilience within the banking sector.

Keywords: Internal Auditors' Professionalism; Risk Management Performance; Internal Auditing; Commercial Banks; Corporate Governance; Organizational Competence; Banking Sector; Kenya (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:gyt:ssmjke:2026-011

DOI: 10.61250/ssmj/v1.i4.11

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