Board composition and enterprise risk management in the banking industry in Kenya
Date
2017
Authors
Kahenya, Nancy Njeri
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The Kenyan banking sector has experienced a myriad of changes, both negative and positive. Being a developing economy, the sector’s efficiency and sustenance is vital to the country’s economy. Enterprise Risk Management and Board of Directors’ composition are both significant issues ensuring stable economies and avoiding corporate mishaps such as those witnessed in the Eron and Worldcom cases. ERM is measured in terms of financial performance. It is in this light that this study seeks to find the relationship between ERM and board composition in terms of gender, education, and board size. Based on the Shannon’s diversity test, the study establishes that the boards of Kenyan listed banks are not diversified in terms of gender and educational backgrounds in boards is quite minimal. The study also finds out that there exists a relationship between board composition and ERM.
Description
A Research project submitted in partial fulfillment of the requirements for the degree of Bachelor of Business Science in Actuarial Science at Strathmore University
Keywords
Enterprise Risk Management (ERM), Banking sector, Board of directors