Enterprise Risk Management Practices in Kenya

Stanley Chege, Gregory Wanyembi and Constantine Nyamboga
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Stanley Chege: Enterprise Computing, Mount Kenya University Computing and Informatics, Thika, Kenya
Gregory Wanyembi: Enterprise Computing, Mount Kenya University Computing and Informatics, Thika, Kenya
Constantine Nyamboga: Enterprise Computing, Mount Kenya University Computing and Informatics, Thika, Kenya

Journal of International Business Research and Marketing, 2023, vol. 8, issue 1, 15-26

Abstract: Enterprise Risk Management (ERM) is a structured and coordinated approach for identifying, assessing, and managing risks faced by an organization. Implementing ERM standards and frameworks has several benefits, including improving focus and perspective on risk. ERM aids in developing leading indicators to detect potential risk events and provide early warning signals. ERM also incorporates key metrics and measurements of risk to improve reporting value and analysis and monitor possible changes in risk vulnerabilities or likelihood. An ERM facilitates an efficient risk management (RM) process, allowing businesses to manage risks efficiently across various departments through a robust risk management framework. This framework includes the related department’s team, working rules, and operational tools, covering all types of risks, including financial, strategic, operational, and accidental losses. The primary advantage of ERM is its ability to create a systematic and intentional process for identifying and addressing risks, treating risk management as a structured exercise where liabilities are addressed as part of a comprehensive framework rather than ad-hoc problem-solving. ISO 31000, NIST risk management framework, and COSO ERM framework are widely used frameworks for managing enterprise risks. Implementing a robust enterprise risk management standard has a positive relationship with business performance.

Keywords: Enterprise Risk Management; ERM; ISO 31000; NIST RMF; COSO ERM; Resilience; Sustainability; Corporate Governance (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:mgs:jibrme:v:8:y:2023:i:1:p:15-26

DOI: 10.18775/jibrm.1849-8558.2015.81.3002

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