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

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.

Enterprise Risk Management and Risk Culture in Construction Public Listed Companies

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.

ENTREPRENEURIAT INNOVANT AU MAROC : MENACES &OPPORTUNITES

Entrepreneurship is the spearhead of market economies (OECD, 1998) whose actor is considered as a maker of projects (according to Cantillon 1755), or even an engine of capitalist dynamics (according to Schumpeter 1911). He is also an opportunity finder who, despite the uncertainty and risk, enthusiastically spots profitability activities. It is clear that entrepreneurship represents a boon for developing countries by injecting new impetus into economic growth. He promises to limit poverty without limiting wealth (Victor Hugo) and to reduce the social and economic gap. Morocco has made significant progress in a perspective that aims to mark the ground for a better valuation of the entrepreneurial act. However, the effectiveness of these efforts appears to be limited by a lack of financial motivation among researchers and the absence of a risk culture of our financial institutions. Also, the economic valuation of knowledge remains far behind compared to the immediate concerns of national university researchers who invest their time and knowledge in basic research. In Morocco, entrepreneurs suffer from the lack or the inadequacy with their aspirations of the means and actions mobilized that do not benefit from fundingup to the requirements of the project carried, a sine qua non conditions for the creation of innovative companies, meeting their ambitions. Is the Moroccan entrepreneurial context well thought in order to help develop and enhance the innovation potential of the country? Is it able to attract and enable innovative entrepreneurs? Our aim is to explore both the entrepreneurial ecosystem and the different interactions it can have,in the Moroccan context,with an innovative entrepreneurial approach, while paying particular attention to the bottlenecks in the process of creating a business, that may underminetake-off opportunities for entrepreneurial activity.

Emotional Intelligence and Risk Leadership on the Effectiveness of ISO 31000 Implementation in Organisation

ISO 31000 indicates that risk management is a science in which competencies are embedded in the individuals. It also emphasises the importance of having proper leadership while demonstrating the commitment towards the risk management implementation. Humans are emotional creatures—we could sometimes be influenced by the force of feelings, rather than rational discussion. This paper describes the dynamics of emotional intelligence and risk leadership in implementing risk management. The research used a qualitative-descriptive design with the verification strategy of case study. It used a non-probability sampling to individuals in the top management position. The findings suggest that without a proper level of emotional intelligence, it is difficult for leaders to cultivate an effective risk culture. These findings may equip decision makers on the interrelationships between emotional intelligence, risk culture, and organisation’s risk management maturity.

Some Aspects of HR Management in Order to Reduce the Operational Risks of the Company

Optimization of management decisions from the point of view of staffing of economic entities is currently the task of minimizing operational risks in order to increase the economic stability of companies. In this connection, the relevance of monitoring the activities of officials in the field of business management increases both before employment and during economic activity on the basis of monitoring the management decisions made, the personal qualities of managers and their competencies, as well as professional development or retraining. In turn, the main problem of the personnel management system of the enterprise as a whole is the redistribution of activities (functions) of managers of all levels, the definition of personal characteristics in accordance with this functional and the formation of a risk culture.