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.

scholarly journals Interactive Model of Disaster risk & Disaster management: The Egg Model

2020 ◽  
Keyword(s):  
Risk Management ◽  
Conceptual Model ◽  
Disaster Management ◽  
Disaster Risk ◽  
Risk Identification ◽  
The Body ◽  
Incident Management ◽  
Risk Treatment ◽  
Or Organization ◽  
The Relationship

A conceptual model is always a suitable way to show the relationship between the different components of a process or among different processes. In the field of incident management, there are several models. However, there is almost no simple, natural, conceptual model to show the relationship between disaster risk management. In this article, a new model, which is called the Egg model, including the shell, the white (albumen) and the yellow (yolk) parts, is introduced. In which, risk management includes three steps. The first step is the assignment of a body, either a person, team or organization, as responsible (the resembling the shell). In the second step, the body does the assessment of the risk (resembling the white part). Risk assessment, on its own, includes risk identification, risk analysis, and risk evaluation. Finally, (resembling the yellow part), treatment of the risk(s) is begun which includes, prevention and mitigation, and preparedness before the disaster and, response and recovery after the disaster occurrence. Obviously, without an intact shell, the whole egg (albumen and yolk) will decay and all resources will be lost. Also without assessment of the risks, proper and effective management of the disaster is almost impossible. The third step of the risk management, the risk treatment, is in fact the disaster management. This simple model shows the relationship between risk management and risk treatment. Although this model may have oversimplified the process of Risk Management, it helps to create a unique overview and understanding for almost everyone.

scholarly journals Interactive Model of Disaster risk & Disaster management: The Egg Model

2020 ◽  
Keyword(s):  
Risk Management ◽  
Simple Model ◽  
Conceptual Model ◽  
Disaster Management ◽  
Disaster Risk ◽  
Risk Identification ◽  
The Body ◽  
Risk Management Process ◽  
Risk Treatment ◽  
The Relationship

Background: A conceptual model is always a suitable way to show the relationship between the different components of a process or among different processes. In the field of incident management, there are several models. However, there is almost no simple, natural, conceptual model to show the relationship between disaster risk management. Methods: Because of the need for the development of a simple model that can quickly and at a glance relate the overall steps and components of the risk management process and various phases of disaster management, this model has been invented based on the evaluation of previous studies and reviewing current literature as well as refining the research and innovation done by the authors. Results: In this article, a new model, which is called the Egg model, including the shell, the white (albumen) and the yellow (yolk) parts, is introduced. In which, risk management includes three steps. The first step is the assignment of a body, either a person, team or organization, as responsible (the resembling the shell). In the second step, the body does the assessment of the risk (resembling the white part). Risk assessment, on its own, includes risk identification, risk analysis, and risk evaluation. Finally, (resembling the yellow part), treatment of the risk(s) is begun which includes, prevention and mitigation, and preparedness before the disaster and, response and recovery after the disaster occurrence. Obviously, without an intact shell, the whole egg (albumen and yolk) will decay and all resources will be lost. Also without assessment of the risks, proper and effective management of the disaster is almost impossible. The third step of the risk management, the risk treatment, is in fact the disaster management. Conclusion: This simple model shows the relationship between risk management and risk treatment. Although this model may have oversimplified the process of Risk Management, it helps to create a unique overview and understanding for almost everyone

scholarly journals Risk Management in Product Design: Current State, Conceptual Model and Future Research

2010 ◽  
Author(s):  
Josef Oehmen ◽  
Mohammad Ben-Daya ◽  
Warren Seering ◽  
Muhammad Al-Salamah
Keyword(s):  
Risk Management ◽  
Product Design ◽  
Process Model ◽  
Risk Identification ◽  
Future Research ◽  
Current State ◽  
Iso 31000 ◽  
Risk Treatment ◽  
Process Elements ◽  
High Degree

Risk management is an important element of product design. It helps to minimize the project- and product-related risks such as project budget and schedule overrun, or missing product cost and quality targets. Risk management is especially important for complex, international product design projects that involve a high degree of novel technology. This paper reviews the literature on risk management in product design. It examines the newly released international standard ISO 31000 “Risk management — Principles and guidelines” and explores its applicability to product design. The new standard consists of the seven process steps communication and consultation; establishing the context; risk identification; risk analysis; risk evaluation; risk treatment; and monitoring and review. A literature review reveals, among other findings, that the general ISO 31000 process model seems applicable to risk management in product design; the literature addresses different process elements to varying degrees, but none fully according to ISO recommendations; and that the integration of product design risk management with risk management of other disciplines, or between project and portfolio level in product design, is not well developed.

scholarly journals PROJECT NETWORK MANAGEMENT: RISKS AND CONTRIBUTORS FROM THE VIEWPOINT OF CONTRACTORS AND SUB-CONTRACTORS

2015 ◽  
Vol 22 (4) ◽  
pp. 631-648 ◽  
Author(s):  
Bon Gang HWANG ◽  
Han Boey NG
Keyword(s):  
Risk Management ◽  
Network Management ◽  
The Body ◽  
Construction Companies ◽  
Body Of Knowledge ◽  
Healthy Working ◽  
Project Complexity ◽  
Project Network ◽  
Project Participants ◽  
Network Risk

Over the years, the network of construction project participants has expanded immensely. Clients have more stringent requirements due to increasing project complexity, difficulties with interaction and coordination, and uncertainties among various stakeholders. Emergent issues can bring many uncertain risks to the project execution process and yet the body of knowledge in this area, as applied to the Singapore construction environment, is insufficient. Therefore, the main objective of this study is to identify critical network risks extant in the industry in order to attain a better understanding of the attitudes of stakeholders towards network risk management. Thirtythree construction companies participated in a survey developed for this study and the analysis of the responses identified ten top critical network risks and the stakeholders who most contribute to these risks. The findings from this study will help the industry to promote a healthy working relationship among stakeholders, and will further facilitate collaboration within the project network.

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 EFFECT OF MANAGING RISK PROCESS IN CONSTRUCTION PROJECTS

2020 ◽  
Vol 5 (4) ◽  
pp. 101-114
Author(s):  
Khanm Noori Kaka HamaAttar
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Theoretical Aspect ◽  
Risk Process ◽  
Risk Identification ◽  
Management Process ◽  
Risk Management Process ◽  
Risks Assessment ◽  
Managing Risk ◽  
The Impact

The aim of this study is to get a better understanding for the effect of the set of the risks in the construction projects, in addition to how mitigating these risks in those projects. Indeed risks are frequently playing the same rules, but the nature of project defines the specific risks of the project. The first step in process of risks assessment is identification them. Once risk identification is complete, risk analysis is used to identify the likelihood the risks that have been identified will happen. Thus by using evidence from other research in the area, this study showed the impact of the set of the stages in the risk management process in the construction projects, which were discussed in greater detail in the theoretical aspect of the current study. The findings of the study were revealed the fact that the comprehension of risk and its management has the direct effect of understanding specific issues that involve to the project. In addition to that, the integration of a risk management process at each stage of its stages in construction projects must be oriented to the progress of the project and permeate all areas, functions and processes of the project. In this regard, the most successful project managers maintain open lines of communication throughout their organizations to stay in touch with constituent’s needs.

scholarly journals THE RELATIONSHIP BETWEEN INTERNAL CONTROL, REGULATION AND FRAUD WITH RISK MANAGEMENT AS A MODERATING VARIABLE

2020 ◽  
Vol 1 (6) ◽  
pp. 968-980
Author(s):  
Elis Lisnawati ◽  
Apollo Apollo
Keyword(s):  
Risk Management ◽  
Data Analysis ◽  
Internal Control ◽  
City Government ◽  
Government Agencies ◽  
Case Research ◽  
Control Regulation ◽  
Managing Risk ◽  
Relationship Of ◽  
The Relationship

Some Government agencies have a poor strategy in dealing with risk because they consider risk management only a formality. This research aims to determine the relationship of the implementation of internal control, regulation and fraud with risk management as a moderating variable, a case research in the Tangerang City Government. This research is a type of quantitative causal, data collection using a questionnaire to 100 respondents of government officer. Data analysis using SmartPLS. Seven research models partially support hypotheses which are statistically positive and significant effects of the relationship between internal control, regulation, risk management and fraud. except for H₅ and H₇ which are statistically negative and weak significant relationship. The result could be used by government as a study material to evaluate the regulation to managing risk in government.

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.

The Role of Construal Alignment in Enterprise Risk Management

2021 ◽  
Author(s):  
Xin Liu ◽  
Bernard Wong-On-Wing
Keyword(s):  
Risk Management ◽  
Mental Representations ◽  
Construal Level Theory ◽  
Enterprise Risk Management ◽  
Risk Indicators ◽  
Management Philosophy ◽  
Enterprise Risk ◽  
Risk Appetite ◽  
Safety Case

According to the Committee of Sponsoring Organizations (COSO 2017), two important elements of an organization’s enterprise risk management (ERM) framework are its risk management philosophy, and its risk appetite and tolerance. Based on Construal Level Theory (CLT), we posit that the effectiveness of ERM depends on the extent of alignment (non-fit or fit) between mental representations (high versus low construal) of those two ERM elements. We test our hypothesis across two risk cases: safety and confidentiality. Results of our experiment suggest that employees are more proactive when there is a construal fit between the emphasis placed on a firm’s risk management philosophy and its expression of the key risk indicators (KRIs). This benefit is observed in the confidentiality case, but not in the safety case. Implications are discussed.

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