The Effect of Psychological Safety and Leadership Style on Risk Performance with Enterprise Risk Management as Intervening Variables

Aulia Himmah ,Yvonne Augustine

doi:10.7176/ejbm/11-12-10

Abstract

This study examines the effect of psychological safety and leadership style on risk performance with enterprise risk management as an intervening variable. The design of this study is a form of survey research, the number of samples in this study were 51 respondents intended for employees in service companies in Indonesia. The results of the study show that the direct effect given X2 to Y is 0.116, while the indirect effect of X2 through z on Y is the multiplication of the value of beta X2 to Z with the beta value Z to Y. Then the total effect given X2 to Y is the direct effect coupled with the indirect effect. Indirect influence < direct effect, shows that indirectly X2 through Z does not have a significant effect on Y. Keywords: Psychological Safety, Leadership Style, ERM, Risk Performance DOI : 10.7176/EJBM/11-12-10 Publication date : April 30 th 2019

Highlights

At the beginning of its development, a silo based risk management perspective, known as Traditional Risk Management (TRM)
The traditional approach is still thick with sectoral ego, where each division or department does not want to share information or other things that are needed for mutual progress
ERM is often referred to as Integrated Risk Management (IRM) and Strategic Risk Management (SRM), which offers a concept of assuming that the entire risk portfolio of the company is integrated and holistic, mitigating risk early and comprehensively

Summary

Introduction

At the beginning of its development, a silo (partial) based risk management perspective, known as Traditional Risk Management (TRM). The traditional approach is still thick with sectoral ego, where each division or department does not want to share information or other things that are needed for mutual progress. There has been a paradigm shift in how to view risk management, using a holistic approach. ERM is often referred to as Integrated Risk Management (IRM) and Strategic Risk Management (SRM), which offers a concept of assuming that the entire risk portfolio of the company is integrated and holistic, mitigating risk early and comprehensively. Risk management is part of the overall business strategy and intended to contribute to protecting and increasing shareholder value

Objectives

Discussion

Conclusion