Abstract
Globalisation and technology advancements have disrupted the organisational landscape and with the proliferation of new technology; risk management is fundamental to transforming the business especially considering the dynamic nature of the digital society organisations now exist in. However, the challenge faced by the enterprise risk management (ERM) function operating in such a dynamic and transformative environment, is the capability to continuously innovate, evolve and transform its risk management processes to meet the needs of the organisation. Questionnaire survey research examined the relative importance of 18 critical success factors for dynamic ERM. Factor analysis revealed that the appropriate grouping of the 18 critical success factors (CSFs) are ERM charter, ERM processes, and ERM business alignment. These findings should empower organisations to identify risk management processes influencing agility in the risk management practise applied.
Highlights
Globalisation and technology advancements have disrupted the organisational landscape
To perform effective risk management, constant alignment should exist between the organisation and enterprise risk function [3, 10], with enterprise risk management (ERM) integrated into the organisations decision making processes
Factor analysis is used to identify a relatively small number of factor groupings that can be used to represent relationships among sets of many interrelated variables [39, 49]. This technique was applied to the questionnaire data to explore the groupings that might exist among the critical success factors (CSFs) enabling dynamic ERM
Summary
Globalisation and technology advancements have disrupted the organisational landscape. The ability of an organisation to be responsive to changing conditions requires that it addresses ambiguity which may be generated through innovative initiatives and market change [4]. The reliance of risk management practices to aid in these decision making processes and addressing ambiguity, are vital, taking into account uncertainty and its effect on achieving the organisation’s objectives [5]. To perform effective risk management, constant alignment should exist between the organisation and enterprise risk function [3, 10], with ERM integrated into the organisations decision making processes. As a decision making tool, ERM should be aligned to the organisation with specific focus on the organisation’s processes, in order to assist in the active and effective management of risk across the business [11]. ERM defines a “process that combines the organisation’s entire risk management activities in one integrated, holistic framework to achieve a comprehensive corporate perspective” [12: 4, 13]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
