Toward enhanced risk management, shaping risk culture theory and making sound decisions under pressure

2021 ◽  
pp. 1-3
Keyword(s):  
Risk Management ◽  
Culture Theory ◽  
Risk Culture

CONCEPTUALISING RISK CULTURE ON ERM IMPLEMENTATION IN CONSTRUCTION COMPANIES

2020 ◽  
Vol 17 (1) ◽  
pp. 59
Author(s):  
Ching Ching Wong
Keyword(s):  
Risk Management ◽  
Risk Identification ◽  
The Body ◽  
Risk Indicators ◽  
Construction Companies ◽  
Risk Appetite ◽  
Risk Culture ◽  
Risk Treatment ◽  
Managing Risk ◽  
The Relationship

Enterprise Risk Management (ERM) is an effective technique in managing risk within an organization strategically and holistically. Risk culture relates to the general awareness, attitudes and behaviours towards risk management in an organisation. This paper presents a conceptual model that shows the relationship between risk culture and ERM implementation. The dependent variable is ERM implementation, which is measured by the four processes namely risk identification and risk assessment; risk treatment; monitor and consult; communicate and consult. The independent variables under risk culture are risk policy and risk appetite; key risk indicators; accountability; incentives; risk language and internal relationships. This study aims to empirically test the relationship between risk culture and ERM implementation among Malaysian construction public listed companies. Risk culture is expected to have direct effects and significantly influence ERM. This study contributes to enhance the body of knowledge in ERM especially in understanding significant of risk culture that influence its’ implementation from Malaysian perspective.

Integration Stages of Project Risk Management (PRM) into Enterprise Risk Management (ERM)

2019 ◽  
Vol 8 (1) ◽  
pp. 13-33
Author(s):  
Ruchi Agarwal ◽  
Lev Virine
Keyword(s):  
Risk Management ◽  
Functional Organization ◽  
Team Building ◽  
Integrated Approach ◽  
Enterprise Risk Management ◽  
System Thinking ◽  
Enterprise Risk ◽  
Risk Culture ◽  
The Difference ◽  
Integration Improvement

Enterprise risk management (ERM) is a relatively new concept for a project-based organization than for a functional organization. A project-based organization, in general, faces several difficulties in the implementation of ERM due to the diversity of risk associated with several projects. From a system thinking perspective, a project-based organization needs an integrated approach to interrelate the isolated processes of diverse projects. The issues are related to fuzzy picture of integration, such as, the difference between ERM and PRM processes, how to integrate the two concepts, what happens if integration process goes wrong, as well as issues with risk technologies and change in risk culture. The article provides informal and formal approaches to integration of ERM and PRM. Successful integration requires not only an understanding the value of integration, improvement in risk culture, but needs a learning-based approach to improve risk expertise, interaction, team building, and decision making.

scholarly journals Effective Risk Management In Organizations:The Nigerian Experience

2013 ◽  
Vol 10 (8) ◽  
pp. 1878-1883
Author(s):  
Ndubuisi Okolo ◽  
Okonkwo Rita Ifeoma ◽  
Ifeoma Amakor
Keyword(s):  
Risk Management ◽  
Content Analysis ◽  
Subject Matter ◽  
Risk Attitude ◽  
Proactive Approach ◽  
Risk Appetite ◽  
The Subject ◽  
Risk Culture ◽  
Corporate Risk ◽  
The Impact

This study is an investigation on effective risk management with respect to organizations in Nigeria. The objective of the paper is to examine factors militating against effective risk management in organizations. The paper adopted content analysis of library materials, journal publications, internet materials and other documented materials relevant to the subject matter. It was concluded that effective risk management is a proactive approach towards mitigating the impact of threats, maximizing opportunities and optimizing the achievement of objectives. It was recommended that managers of organizations in Nigeria should imbibe and articulate good corporate risk attitude, strong risk culture and clearer risk appetite.

scholarly journals The Moderating Effect of Risk Culture in Relationship between Leadership and Enterprise Risk Management Implementation in Malaysia

2018 ◽  
Vol 9 (1) ◽  
pp. 244
Author(s):  
Mohamad Hisyam Selamat ◽  
Othman Ibrahim
Keyword(s):  
Risk Management ◽  
Quantitative Research ◽  
Listed Companies ◽  
Moderating Effect ◽  
Senior Management ◽  
Primary Data ◽  
Research Approach ◽  
Management Commitment ◽  
Risk Culture ◽  
The Relationship

The present study is designed to examine the relationship between leadership (board of directors, senior management commitment and chief risk officer) and ERM implementation amongst Malaysian public listed companies (PLC). It is also examining the moderating effect of risk culture on the relationship between leadership and ERM implementation amongst Malaysian PLC. This research adopted quantitative research approach to analyze the data obtained from the questionnaire distributed to the PLC via their Risk Management Division. From the 814 listed companies, according to Bursa Malaysia main board directory, 300 were taken as a sample. The primary data collection commenced after the pilot test was completed and the data was analyzed using SPSS Version v.18. From the analysis it is found that senior management commitment and chief risk officer have a significant and positive relationship with the ERM implementation. The hierarchical multiple regressions indicated that risk culture played the moderating role in the relationship between senior management commitment, chief risk officer and ERM implementation. This study provides significant theoretical and practical contributions for the industry, practitioners, researchers and academician, besides providing a framework for ERM implementation in the listed companies in Malaysia. The results of this study could serve as a guide to develop a strategy for audit actions in the assessment of ERM practices to further improve the level of ERM implementation by the intended shareholders as a whole.

Exploring risk culture controls: to what extent can the development of organizational risk culture be controlled and how?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Franziska Grieser ◽  
Burkhard Pedell
Keyword(s):  
Risk Management ◽  
Ownership Structure ◽  
Wide Spectrum ◽  
Organizational Studies ◽  
Structured Interviews ◽  
Content Type ◽  
Top Managers ◽  
Risk Culture ◽  
Context Specific ◽  
Perceive Risk

Purpose This study aims to explore the controllability of risk culture, identify and categorize risk culture controls used in firms and explore how industry and ownership structure affect the use of different risk culture controls. Design/methodology/approach This explorative study is based on 32 semi-structured interviews with 37 participants who are heads of risk management or top managers in German firms from different industries with different ownership structures. Findings Interviewees perceive risk culture to be largely controllable. The authors identify a wide spectrum of risk culture controls, ranging from leadership and motivational controls to risk competence controls; in each category, the authors find value-, symbol- and clan-based controls. Leadership controls were most extensively discussed by the interviewees. The use of risk culture controls varied based on industry and ownership structure. Research limitations/implications Due to the explorative character of the approach, the authors cannot claim representativeness for the results. The study is limited to one point in time and to a German sample. The findings imply that companies should select risk culture controls according to their own context and that implementation requires support by the top and middle management. Originality/value The authors respond to the call for more organizational studies on risk management that consider cultural paradigms (Arena et al., 2010; Mikes, 2011; Power, 2009). The study systematically identifies risk culture controls used in corporate practice and categorizes them. It provides tentative evidence of the relevance of context-specific factors for the use of risk culture controls.

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