A survey of challenges and risks encountered in the Management of electronic records for companies quoted At Nairobi Stock Exchange

Abstract

The objective of this study was to determine and document current practice in management of electronic records, challenges and risks encountered in the management of electronic records. The study also established the key factors in development of a recordkeeping system. The population of the study consisted of all companies quoted at Nairobi stock exchange. Data was collected using a questionnaire personally administered by the researcher. Out of the 31 respondents, 2 were from agricultural sector, 6 from commercial and services sector, 8 from finance and investment sector, and 15 from industrial and allied. Results of the study show that managers of electronic records are faced with a number of challenges. Amongst them, limited knowledge as to what constitutes a record in electronic environment, end users who have little knowledge on effective management of electronic record, lack of effective and modem systems for recordkeeping and island of information systems which are not integrated. As a result of these challenges organizations are exposed to a number of business risks. Amongst them are potential losses of money and customer goodwill. Further, the study gathered from the respondents what they considered as the key steps in development of a recordkeeping system to overcome the challenges as well as mitigate the risks. Their recommendations are as follows: 1) Ensuring that an environmental analysis is conducted first and fore most; 2) Development of system specifications and promulgating an appropriate mIX of procedures and standards; and 3) Training of technical personnel and end users.