Risk Management Strategies and Implementation of Online Banking Technology Projects by Selected Commercial Banks in Kenya

The implementation of the online banking technology projects by commercial banks has proved to be a double edged-sword. On one had the banks in Kenya have introduced various types of online banking technology. These technologies have enabled the banks to realise significant growth in customer numbers, reduction in costs, and an increase in profits. On the other hand, the technology projects have posed a significant threat to the banks. The online banking technology projects have inherent risk. The risks include disruption of critical processes, breach of private and confidential client and employee information, and coordinated disruption of services attacks. Banks have been forced to spend approximately ten percent of the total information technology budget on dealing with the risks that accompany the use of on-line banking technology. This research purposed to determine the influence of risk management strategies on the implementation of online banking technology projects by commercial banks in Kenya. The risk management strategies that were evaluated in the study included risk assessment, risk mitigation, risk transfer, and risk acceptance. Project implementation was indicated by cost, quality, and time taken. The study was anchored by the Enterprise Risk Management Theory and Logical Framework Approach. The study adopted the descriptive research design. The study population consisted of the 39 commercial banks operating in Kenya as at 31^st September 2018. The study collected data using questionnaires. The study established that risk assessment and risk acceptance strategies have a positive and statistically significant effect on the implementation of online banking projects. The effect of risk mitigation and risk transfer strategies were found to be positive but statistically insignificant.