Poor operational risk management has been the fundamental cause of most significant losses in numerous financial and non-financial companies worldwide. In Kenya, for example, over 15 State-sponsored enterprises (SSEs) in the past two or three decades have collapsed.
Other large businesses, such as the retailer Nakumatt, were closed down after struggling to repay suppliers, landlords, and other creditors. Many of these failures were due to fraud and corruption and the lack of commitment to governance and risk management expertise at the board and senior management levels.
