Effects of Project Risk Identification on the Performance of Core Banking Systems in Commercial Banks of Kenya
- April 6, 2020
- Posted by: RSIS
- Categories: Banking & Finance, IJRISS, Management
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue III, March 2020 | ISSN 2454–6186
Augustus Nzili Mutua1, Dr. Kirui Caleb2
1,2Department of Management Science, School Of Business, Kenyatta University, Kenya
Abstract: Commercial banks in Kenya often establish a risk management practice in their core banking system for improving the performance and increase the profits. Adoption of Core banking systems is widely complex and has often significant budgets, tight schedules and consume immense resources hence minimize risks linked to be treated as a priority to every project manager. The study examined the extent to which project risk identification influences core banking system projects performance in selected commercial banks, in Kenya. A descriptive research design was utilized. The accessible population was 80 respondents comprising of 10 project managers from each bank. A census of 80 respondents was done to form the study sample size. Questionnaires were utilized to collect data. The collected data was quantitatively analyzed using descriptive statistics and multiple regression analysis. The study found that risk identification, risk analysis, risk response and risk monitoring had a positive significance on project performance. The study concluded that identifying risk enables full risk analysis to be done and risk to be addressed and the project managers qualify risk based on likelihood and impact. The study recommended that commercial banks should increase level of project risk identification as it enhances the risk management activities on each significant risk.
Keywords: Project Risk Identification, Organizational Performance
A Project is defined as a short-term and distinct task carried out to achieve a set end result and it is only successful if it is achieved with the expected time, cost, attains the required customer expectations and is utilized by the customers who are directly linked to the benefits of the project (Crawford & Bryce, 2013). According to Ward and Chapman (2013) the cost of the project and time exceed because of failure a proper measuring system in regard to the assessment and control of the risk involved in the project. The author indicates that project risk is the probability of an occurrence of an event with likelihood of having an insignificant effect on the objectives of the project and gauged against the possibility and its impact.