Abstract:
In the last years, industries have taken the global perspective hence diversifying their products and services offered. The research study was based in the sector of risk management with its effect on the financial performance of the banking institutions in Kenya. Collapsing of banking and financial institutions have been witnessed despite the growth of the advance technologies and using of qualified personnel in the working environment. Risk management therefore has become an issue that need to be implemented in the commercial banks to control the risks and losses encountered. In the research study, both primary and secondary data has been used in data collection where the primary data was conducted by the help of questionnaires distributed in different banking institutions and the secondary data was retrieved from different banking websites and past research studies from different scholars. The research study showed that companies that have implement the risk management’s strategies usually have a positive performance in terms of their finances.
