Effect of Operational Risk Mitigation Strategies on Financial Performance of Real Estate Projects in Nairobi County: A Case of Knight Frank Limited

In the present day business context, all business entities need to prepare themselves to cope with crises unlike in an ideal world where managers would identify all possible threats that could happen to them and thus develop a contingency plan for each of these sources of crisis. Therefore, the capability of an organization to flourish in the face of risks that either bring forth opportunities or threats is a major sign of its ability to improve financial performance of the organization. This study was conducted to clearly determine the influence of Operational Risk Mitigation strategies on financial performance of Real estate projects within Nairobi County and also establish the challenges faced by the organization in managing risk. The study adopted a case study research design whereby the data collection tool was mainly through interview guide. Content analysis was used to analyze the qualitative primary data, which then collected through conducting of interviews and secondary information from the organizational documents. The study focused on the financial performance of Knight Frank limited. The enterprise risk management process of an organization was focused on a number of factors including mandate from the top, determination and assessment of operational risk mitigation process, operation of the control framework, the periodic reporting and analysis process of the firm. The departmental head management of Knight Frank ltd played an important role in the operational risk management process of the firm since they were expected to incorporate the risk assessment process in the overall strategy of the firm as well as making it part and parcel of any decision being made in the organization towards improvement of financial performance. The study recommend board of directors and management to have a reasonable assurance that they understand to what extent the entitys risk management objectives affected, ensure that operations objectives are met, that the entitys reporting is reliable and that all applicable laws and regulations were being complied with in the process of risk management for the aim of improving financial performance of the real estate projects.