Theoretical review of enterprise risk management culture drivers for insurance firms in Kenya

Abstract

The study examined the drivers of Enterprise Risk Management culture in insurance firms in Kenya. The research was conducted using a desktop methodology. This involves the use of qualitative data that is obtained from government publications, public records, historical and statistical documents, and technical and trade journals. This kind of data is commonly preferred since it is easily accessible hence it saves time and cost of field research. Therefore, this study relied on already published studies, public records, and online journals to obtain secondary data that was used to draw the results, conclusion, and recommendations of the study. The results from the empirical review were found to have conceptual and geographical gaps that the current study aimed to fill. Most of the findings from the reviewed studies revealed that the competence of risk assessment strategies, risk treatment strategies, corporate governance frameworks, and risk monitoring frameworks are some of the drivers of ERM culture in Insurance firms. The results also revealed that the implementation of effective ERM culture has a significant impact on the performance of insurance firms. This study will benefit most of the stakeholders in the insurance sector in Kenya. The findings of the study will also enable the risk committee to identify the factors that can help develop and maintain technical models that support the ERM function.