Enterprise Risk Management: Lessons from the Field

Shenkir, William G.; Barton, Thomas L.; Walker, Paul L.; Fraser, John; Simkins, Betty J.

doi:10.1002/9781118267080.ch24

Cited by 9 publications

(8 citation statements)

References 3 publications

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“…Actions that management can take for a particular risk include avoiding, mitigating, sharing and accepting. Management determines its strategy for a risk, taking into account the impact that a particular decision will have, the probability of the risk, the severity, the area of influence, the level of exposure, the perceptibility and the costs and benefits of the resources that will be spent managing that risk (Shenkir and Walker, 2014).…”

Section: Findings and Resultsmentioning

confidence: 99%

Developing conceptual model for safety risk management in aviation as building capacity and resilience strategy

KUCUK YILMAZ,

MALAGAS,

FLOURIS

2024

AEAT

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Purpose This study aims to develop an inclusive, multidisciplinary, flexible and organizationally adaptable safety risk management framework, including diversity management, that will be implemented to ensure safety is and remains at the desired level. If the number of incidents and potential incidents that could lead to accidents and their impact rates are to be reduced operationally and administratively, aviation safety risks and sources of risk must be better understood, sources of risk identified, and the safety risk management framework designed in an organization-specific and organization-wide sustainable way. At this point, it is necessary to draw the conceptual framework well and to define the boundaries of the concepts well. In this study, a framework model that can be adapted to the organization is proposed to optimize the management of risks and provide both efficient and effective resource allocation and organizational structure design in its operations and management functions. Design/methodology/approach The qualitative research method – triple techniques – was deemed appropriate for this study, which aims to identify, examine, interpret and develop the situations of safety management models. In this context, document analysis, business process modeling technique and Delphi techniques from qualitative research methods were used via integration as the methodology of this research. Findings To manage dynamic civil aviation management activities and business processes effectively and efficiently, the risk management process is the building block of the “Proposed Process Model” that supports the decision-making processes of aviation organizations and managers. This “Framework Conceptual Model” building block also helps build capacity and resilience by enabling continuous development, organizational learning, and flexible structuring. Research limitations/implications This research is limited to air transportation and aviation safety management issues. This research is limited specifically to a safety-based risk management framework for the aviation industry. This research may have social implications as source saving, optimum resource use and capacity building will make a contribution to society and add value besides operational and practical implementation. Social implications This research may contribute to more safe operations and functions in the aviation industry. Originality/value Management and academia may gain considerable support from this research to manage their safety risks via a corporate-tailored risk management framework, both improving resilience and developing corporate capacity. With this model presented, decision-makers will have a guiding structure that can optimally manage the main risk types that may be encountered in the safety risk in the fields of suppliers, manufacturers, demand changes, logistics, information management, environmental, legal and regulatory. Existing studies in the literature are generally in the form of algorithms and cannot be used as a decision-making support tool. This model aims to fill the gap in the literature. In addition, added value may be created by applying this model to optimum management safety risks in the real aviation industry and its related sectors.

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Section: Findings and Resultsmentioning

confidence: 99%

Developing conceptual model for safety risk management in aviation as building capacity and resilience strategy

KUCUK YILMAZ,

MALAGAS,

FLOURIS

2024

AEAT

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“…Top management support plays an important role in ERM implementation (Shenkir and Walker, 2006). This type of support includes establishing risk management teams, periodically reviewing risk management plans, adhering to risk management policies and addressing issues raised by employees.…”

Section: Resultsmentioning

confidence: 99%

“…However, ERM drives performance improvements without incurring expenses for organisations (Bertinetti et al , 2013), reduces operating and external capital costs, improves capital efficiency and creates beneficial synergies (Hoyt and Liebenberg, 2011). Shenkir and Walker (2006) argued that effectively implementing ERM requires an organisational context involving solid commitment from top management, clear risk management and appetite philosophy, integrity and ethical values and certain infrastructure. Lack of human resource expertise has also been identified as a barrier in ERM implementation.…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of enterprise risk management practices in Malaysianwaqfinstitutions

Yakob

Abdullah

Yakob

et al. 2021

IMEFM

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Purpose This study aims to assess enterprise risk management (ERM) practices in waqf institutions (WIs) along with their strengths and weaknesses; highlight ERM trends in WIs; and determine the best ERM practices for these institutions. Design/methodology/approach Data were collected via structured interviews with nine WI managers in Malaysia. A standardised questionnaire was adopted for the interviews, which focussed on ERM implementation in WIs. The collected data were analysed in three steps, namely, data reduction, data display and verification/conclusion. The frequency distribution of these data were then illustrated and the mean values and differences of the studied groups/variables were examined. Findings WIs have a sub-optimal ERM implementation, whose aspects need to be improved over time. These institutions have focussed on their ERM practices at the strategic level yet ignored those at the operational level. Specifically, WI officers have well-defined internal environments and objectives, but risk monitoring, which ensures effective implementation of ERM, is lacking. The presence of risk management committees and units may be linked with the successful implementation of ERM. However, ERM knowledge and top management support do not show clearly associations with ERM implementation. WIs should focus on improving their ERM implementation governance. Research limitations/implications Findings underscore the need for WIs to launch a formal ERM programme and for relevant stakeholders to create the appropriate infrastructures that support ERM implementation, including amended rules, ERM policies and allocated funds for training and education, to promote ERM implementation knowledge and awareness. The successful implementation of ERM not only improves the service quality, sustainability and performance of WIs but also promotes the national waqf agenda as a key economic driver. Originality/value ERM in non-profit organisations, such as WIs, has received limited research attention relative to that in profit-driven organisations despite having unique risks. To the best of the knowledge, this study is the first to identify those trends that explain ERM practices and to determine the ERM best practices of WIs.

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“…Typically, not only can risk management create value for a corporation, but it may additionally cover overall economic growth through lowering capital costs and activities related to industrial uncertainty. Shenkir and Walker (2006) indicated that company executives tend to make a commitment to risk management as they have a duty regarding value creation, general support and the growth of shareholder value. Wong (2012) argued that the practice of risk management in a firm, especially financial firms, is disclosed in its annual reports, which are likely to be reviewed by auditors and prepared in accordance with the rules and regulations governing financial reports.…”

Section: Introductionmentioning

confidence: 99%

The effect of the board of directors on financial performance and the existence of risk management as an intervening variable

Musallam

2024

JIMA

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Purpose This study aims to analyze the effect of the board of directors on financial performance, either directly or indirectly, through the existence of risk management after the issuance of the Palestinian Code on Corporate Governance in Palestine. Design/methodology/approach This study uses a panel data of 31 Palestinian listed companies from 2010 to 2016. It also uses structural equation modeling (SEM) model. Findings The results of the SEM model show a significant positive relationship of the existence of risk management and the tenure-chief executive officer (CEO) with financial performance. However, CEO duality has a significant negative relationship with financial performance. The results also show a significant positive relationship of CEO duality and board size with financial performance through the existence of risk management. Research limitations/implications This study adds to the existing literature by analyzing the effect of the board of directors on financial performance, either directly or indirectly, through the existence of risk management in Palestine, one of the youngest stock exchanges in the region, which assists in testing the validity of agency theory in a young and small emerging Islamic market context. Practical implications The results of this paper are significant for shareholders and managers of companies to make proper choices to secure the interests of stakeholders and increase the flow of capital and foreign investment. Originality/value To the best of the author’s knowledge, it is one of the first papers to investigate the effect of the board of directors on financial performance, either directly or indirectly, through the existence of risk management in Palestine.

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Enterprise Risk Management: Lessons from the Field

Cited by 9 publications

References 3 publications

Developing conceptual model for safety risk management in aviation as building capacity and resilience strategy

Developing conceptual model for safety risk management in aviation as building capacity and resilience strategy

Analysis of enterprise risk management practices in Malaysianwaqfinstitutions

The effect of the board of directors on financial performance and the existence of risk management as an intervening variable

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