Abstract:
he main purpose of the study was to determine enterprise risk management
effect on organizational performance of state corporations in Kenya. This
study was guided by agency theory. The study used explanatory cross
sectional survey design. Primary data was collected from structured
questionnaires. A survey was carried out on 218 state corporations in Kenya.
Data collected was analyzed by use of descriptive and inferential statistics.
The research hypotheses were tested using multiple regression analysis. The
results revealed that risk structure, governance and process practices had
positive and significant effect on organizational performance. This study
contributes to theory by centering enterprise risk management on the
empirical testing of agency theory on the relationship between enterprise risk
management practices and organizational performance. The study
recommends that policy makers in state corporations should integrate risk
management practices across all functions and business units for the purpose
of addressing risks before they even occur.
