Risk mitigation strategies adopted by ernst and young in Kenya

Abstract

The environment in which businesses operate today is made up of numerous controllable and uncontrollable factors. Businesses and specifically professional services firms have to deal with numerous risks that arise in the course of doing business. Thus, it is no wonder risk management has become a key boardroom focus area. Proper risk management, and more specifically risk mitigation, helps protect business performance thus ensuring sustainable results. The purpose of the study was to determine the risk mitigation strategies adopted by Ernst & Young in Kenya that enable it to remain a leader in its area of operation. The study made use of both primary and secondary sources of data. The primary data was collected by use of an interview guide whereas the secondary data was collected from various publications and books within and outside the organization. The results of the study were then evaluated using content analysis. The study established that the firm is faced with various risks including reputation risk, potential loss of experienced talent to competitors and the market, potential exposure of confidential client information, infrastructure gap, ensuring continuity and safe custody of firm information as well as regulation and compliance. The study further identified the various strategies adopted by Ernst & Young in Kenya to mitigate these risks including the continual and consistent communication of the firm‟s motto to its employees, periodic events targeted at upholding the strength of the Ernst & Young brand, recruitment and retention of highly qualified personnel, rewards and recognition programmes, tight security measures to uphold confidentiality of client information, keeping abreast with recent developments in technology, use of well thought out and researched methodologies to carry out operations and setting up of the quality and risk management department.