Abstract:
Every opportunity and every decision involve some risk and uncertainty. Successful
firms realize the dramatic difference between taking active risks and sitting passively at
risk. When firms decide to engage in business across borders, the risks are severe, and
the option of staying in the mother country has its own share of risks of inaction in the
face of competitors that are bolder and more agile. Achieving sustainable development
and success involve implementing best strategies for dealing with risks. The objective
of this study was to examine the effect of risk management strategies on the sustainable
competitive advantage of commercial banks in Kenya. The specific objectives of the
study were; to We investigated the impact of risk avoidance strategies on sustainable
competitive advantage of effect of risk transferring strategies on sustainable competitive
advantage and impact of risk absorption strategies on sustainable competitive
advantage of commercial banks in Kenya. The study adopted a descriptive research
design that employed survey methods. Data was collected using self-administered
questionnaires. The target population was the risk managers of all the 43 commercial
banks in Kenya. Data were analyzed using mean, standard deviation and regression
analysis. Risk avoidance strategies positively but insignificantly affected sustainable
competitive advantage while risk transferring strategies had a positive but insignificant
effect on sustainable competitive advantage. On the other hand, risk absorption
strategies positively and significantly contribute to sustainable competitive advantage.
