Records management and risk management at Kenya Commercial Bank Limited, Nairobi area

Abstract

Risk management has become a major point of focus in the banking industry. Despite increasing efforts and strategies for mitigating risk in the banking industry, there continues to be a sense of neglect of records and records management as an essential component of risk management. This study investigated records management and risk management at Kenya Commercial Bank (KCB) Ltd, Nairobi. The specific objectives of the study were to: establish the nature and type of risks KCB is exposed to; conduct business process analysis and identify the records generated; establish the extent to which records management is emphasized within KCB as a tool for managing risk; identify vital records that need protection because of their nature and value to the Bank. The study was informed by Frank Upward’s (1980) Records Continuum Model and the Government of Canada (2000) Integrated Risk Management Model. The study population sample size constituted thirty six (36) respondents drawn from five KCB Nairobi braches and five Head Office units comprising management and non- management cadres of staff. Face-to-face interviews were used as the data collection method. Qualitative and quantitative approaches were used to analyse, present and interpret data. Analysis of data was done by use of thematic method. Key findings of the study were that: KCB is exposed to a wide range of risks by virtue of its business; KCB generates a lot of records in the course of its business activities; there are inadequate records management practices and systems, which undermine risk management function. Recommendations include: KCB Operations Division should develop a comprehensive enterprise-wide records management programme for the Bank; KCB Risk Management Division should include Records Management as part of its risk management strategies.