isk Management Strategies and Sustainable Competitive Advantage of Commercial Banks in Kenya

Abstract

Every opportunity and every decision involve some risk and uncertainty. Successful firms realize the dramatic difference between taking active risks and sitting passively at risk. When firms decide to engage in business across borders, the risks are severe, and the option of staying in the mother country has its own share of risks of inaction in the face of competitors that are bolder and more agile. Achieving sustainable development and success involve implementing best strategies for dealing with risks. The objective of this study was to examine the effect of risk management strategies on the sustainable competitive advantage of commercial banks in Kenya. The specific objectives of the study were; to We investigated the impact of risk avoidance strategies on sustainable competitive advantage of effect of risk transferring strategies on sustainable competitive advantage and impact of risk absorption strategies on sustainable competitive advantage of commercial banks in Kenya. The study adopted a descriptive research design that employed survey methods. Data was collected using self-administered questionnaires. The target population was the risk managers of all the 43 commercial banks in Kenya. Data were analyzed using mean, standard deviation and regression analysis. Risk avoidance strategies positively but insignificantly affected sustainable competitive advantage while risk transferring strategies had a positive but insignificant effect on sustainable competitive advantage. On the other hand, risk absorption strategies positively and significantly contribute to sustainable competitive advantage.