Effect of enterprise risk management on fraud occurrence in independent regulatory agencies in Kenya
Date
2021
Authors
Munika, Michael Kibukosya
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Despite the efforts made to ensure the public sector in Kenya implements Enterprise Risk Management and realizes the related benefits, the sector still faces the challenge of poor and declining performance, which inhibits the realization of sustainable economic growth. The purpose of the study was to establish the effect of enterprise risk management on fraud occurrence in independent regulatory agencies in Kenya. The objectives of this study were to determine the effect of the risk management process on fraud occurrence; the effect of risk governance on fraud occurrence; the effect of risk aggregation on fraud occurrence and determine the moderating effect of the Mwongozo code of governance on the relationship between enterprise risk management practices and fraud occurrence. The study was anchored on Agency theory, Stakeholder theory, and the Fraud Triangle theory. It used an explanatory research design and the target population comprised twenty-five independent regulatory agencies in Kenya. Primary data was collected using a semi-structured questionnaire administered to the employees through drop and pick method. The data were analyzed through descriptive statistics using the Statistical Package for Social Science (SPSS version 24.0) and presented through percentages, frequencies, mean and standard deviation. Additionally, the study used logistic regression analysis to analyze the relationship between the study variables. From the results, the study concludes that the risk management process has a negative and significant effect on incidents of corruption in independent regulatory agencies in Kenya; risk aggregation has a negative and significant effect on misstatement of financial statements; Further, Mwongozo Code of governance does influence the relationship between enterprise risk management and misstatement of financial statements.
Description
A Dissertation submitted in partial fulfilment for the award of a Master of Commerce Degree at Strathmore University
Keywords
Enterprise risk management, Fraud, Independent regulatory agencies_Kenya