scholarly journals Assessing and Re-setting Culture in Enterprise Risk Management

2018 ◽  
Vol 85 (1-2) ◽  
pp. 131-172
Author(s):  
Harold Weston ◽  
Thomas A. Conklin ◽  
Kristen Drobnis
Keyword(s):  
Risk Management ◽  
Organizational Culture ◽  
Cultural Change ◽  
Enterprise Risk Management ◽  
Organizational Studies ◽  
Risk Manager ◽  
Enterprise Risk ◽  
Risk Managers

Among the tenets of enterprise risk management (ERM) is the need to instill a risk-aware culture throughout the firm. Yet, how to actually interpret and change organizational culture is generally missing from the ERM literature. Prior surveys found risk managers lacked useful information about organizational culture and cultural change to implement a “risk aware culture.” Our survey of risk managers found this gap persists. The disciplines of organizational studies, business anthropology and sociology provide guidance on organizational culture, which involves identifying and interpreting the embedded assumptions, values, myths, artifacts, rituals, and stories that communicate and perpetuate a culture. The risk manager can use this knowledge to apply change to the culture. Changing behavior without changing culture may simply result in compliance without adoption. This article seeks to bridge the studies of organizational culture and change to the risk manager.

scholarly journals Risk of regulatory failure of “risk-based regulation” while using enterprise risk management as a meta-regulatory toolkit

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Moniruzzaman
Keyword(s):  
Risk Management ◽  
Financial Regulation ◽  
Self Regulation ◽  
Secondary Data ◽  
Enterprise Risk Management ◽  
Regulatory Regime ◽  
Content Type ◽  
Enterprise Risk ◽  
Regulatory Failure ◽  
Risk Managers

PurposeDebate is growing around the expansion of risk-based regulation. The regulation scholarship provides evidence of regulatory failure of the risk-based approach in different domains, including financial regulation. Therefore, this paper aims to provide cautionary evidence about the risk of regulatory failure of risk-based strategy in the financial regulation while using enterprise risk management (ERM) as a meta-regulatory toolkit.Design/methodology/approachBased on interview data gathered from 30 risk managers of banks and five regulatory personnel, combined with secondary data, this study mainly explores the challenges for meaningful use of ERM based self-regulation in regulated banks. The evidence helps to assess the risk of regulatory failure of the risk-based regulation while using ERM.FindingsThe evidence reflects that regulated banks face diverse challenges arising from both peripheral and internal environments that limit the true internalization of ERM-based self-regulation. Despite this, the regulator uses this self-regulation as a meta-regulatory toolkit under the risk-based regulation to achieve the regulatory aims. However, the lack of true internalization of ERM based self-regulation is likely to raise the risk of regulatory failure of risk-based regulation to achieve the regulatory goals. Risk-based regulation is an evolving strategy in the regulatory regime. Therefore, care should be taken while using ERM as a regulatory toolkit before relying on it substantially.Originality/valueThe paper provides empirical insights about the challenges for effective use of ERM as a meta regulatory toolkit that might be useful practically both to the regulators and regulated firms.

scholarly journals The Effect of Enterprise Risk Management on Ameliorating Competitive Advantage: A Cross-Sectional Study of Software Houses in Pakistan

2021 ◽  
Vol 29 (4) ◽  
pp. 2525-2543
Author(s):  
Sameeta Javaid ◽  
Faheem Aslam
Keyword(s):  
Risk Management ◽  
Organizational Culture ◽  
Competitive Advantage ◽  
Structural Equation ◽  
Enterprise Risk Management ◽  
Primary Data ◽  
Equation Modeling ◽  
Validity And Reliability ◽  
Cross Sectional ◽  
Enterprise Risk

In the current dynamic environment, organizations need a more anticipatory and effective risk management system. Implementing the holistic Enterprise Risk Management (ERM) process will perceive, analyze, and assess risks as they must be regarded from the entire enterprise’s perspective. The research aims to empirically analyze the effect of ERM practices on the Competitive Advantage (CA) and examine the moderating role of Organizational Culture (OC) in the Software industry of Pakistan. The primary data were obtained from 250 respondents through the questionnaire method. The validity and reliability were analyzed by using Structural Equation Modeling Analysis, PLS Algorithm, and Bootstrapping. The results show that the implementation of ERM has a significant effect on firms’ competitive advantage. The analysis supports the hypothesis and identifies the positive moderating effect of organizational culture in carrying out ERM programs, which can enhance organizational competitiveness. This study is useful for managers to help them in the planning and decision-making phase so that they can act responsibly in a rapidly changing environment and consider organizational culture as one of the key factors of the ERM program that helps accomplish organizational competitiveness.

scholarly journals Enterprise Risk Management and Risk Culture in Construction Public Listed Companies

2021 ◽  
Vol 26 (2) ◽  
pp. 17-36
Author(s):  
Ching Ching Wong ◽  
Faizul Azli Mohd Rahim ◽  
Siaw Chuing Loo
Keyword(s):  
Risk Management ◽  
Listed Companies ◽  
Two Dimensions ◽  
Enterprise Risk Management ◽  
Annual Reports ◽  
Top Management ◽  
Risk Manager ◽  
Enterprise Risk ◽  
Risk Appetite ◽  
Risk Culture

Inadequate risk management and lack of risk culture can expose a company to unexpected risk events, which can negatively affect its performance. However, there are inconsistencies in suitable dimensions to measure the enterprise risk management (ERM) construct, as well as insufficient embedding strategies for risk culture. This study aims to identify the ERM practices and risk culture dimensions among the Malaysian construction public listed companies (PLCs). The roles of top management and chief risk officer/risk manager in influencing ERM and risk culture are also explored. A total of 46 annual reports and 10 interviews of industry practitioners were analysed using content analysis. The analysis of the annual reports found that risk policy and risk appetite/tolerance, monitoring key risk and accountability are the three dimensions of risk culture. In addition, based on the interviews, reward and recognition and internal relationships were identified as the two dimensions of risk. Top management and risk manager were found to be the primary drivers of ERM programme and risk culture in construction PLCs. The results of this study are used to formulate a survey instrument for the subsequent data collection to test the proposed theoretical model.

Enterprise Risk Management Software

2018 ◽  
pp. 130-158
Author(s):  
Dražena Gašpar ◽  
Mirela Mabić
Keyword(s):  
Risk Management ◽  
Software Development ◽  
Real Time ◽  
Enterprise Risk Management ◽  
Software Support ◽  
Management Software ◽  
Research Results ◽  
Enterprise Risk ◽  
User Expectations ◽  
Risk Managers

This chapter presents research results on user requirements related to enterprise risk management software. The authors developed a questionnaire to investigate the standpoints of risk managers, quality managers, and others in charge of risk management regarding the functionality they expect risk management software to support. In today's globalized and volatile world, the recognition, understanding, and management of risks is critical for an organization's survival. Adequate software support enables organizations to take an innovative, risk-based approach to governance and compliance and to gain a holistic, enterprise-wide view of risk exposure and near-real-time risk management and monitoring. Research results show the main attributes that risk management software should have in order to fulfill user expectations. The chapter also provides some important guidelines and suggestions for risk management software development and improvement.

scholarly journals THE EFFECT OF ENTERPRISE RISK MANAGEMENT, KNOWLEDGE MANAGEMENT, AND ORGANIZATIONAL CULTURE ON ORGANIZATIONAL RESILIENCE

2021 ◽  
Vol 3 (2) ◽  
pp. 93
Author(s):  
Zef Arfiansyah
Keyword(s):  
Risk Management ◽  
Organizational Culture ◽  
Knowledge Management ◽  
Enterprise Risk Management ◽  
Organization Culture ◽  
Primary Data ◽  
Organizational Resilience ◽  
Theoretical Point ◽  
Management Knowledge ◽  
Enterprise Risk

This study aims to identify the influence of Enterprise Risk Management, Knowledge Management, and Organizational Culture on the company's ability to survive in an ever-changing environment. This research is a quantitative study using primary data. The data were obtained through a questionnaire distributed to accountants who held the lowest supervisory positions in private Indonesian companies. With a sample of 103 respondents, the data were processed using linear regression. This study found that in the context of companies in Indonesia, Enterprise Risk Management and Organizational Culture can increase Organizational Resilience. However, this study failed to prove the role of Knowledge Management in Organizational Resilience. This study provides contributions in both managerial and theoretical aspects. In the managerial aspect, this study implies ERM and organization culture are elements that should be implemented so that companies can survive in a volatile environment. From a theoretical point of view, this research has proven that in the long term ERM is able to maintain organizational resilience. Besides, this study also indicates that knowledge management is still not widely applied by companies in Indonesia. For this reason, the attention of management so that knowledge management is applied needs to be improved.

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