Modeling firm resources –enterprise risk management relationships

Abstract

Purpose – The purpose of this paper is to focus, explore, and provide an in-depth analysis of the relationship between company resources and the process of enterprise risk management (ERM) in order to strengthen corporate structures against emerging uncertainties. Design/methodology/approach – This paper proposes a strategic risk management framework for the development and sustainability of corporate performance by focussing on the dimension of firm resources extracted from the resources-based theory. This paper focussed on using Malaysia listed firms under Malaysian Bourse as sample frame using the random sampling technique whereby questionnaire were distributed among head of risk management department. Of the 600 questionnaires distributed, 223 were returned completed. Findings – The survey results indicate that intangible resources play a significant roles in resources – performance relationship while the other two main dimension that are tangible resources and capabilities have shown contradictory results. Research limitations/implications – This paper only focussed on using Malaysia listed firms under Malaysian Bourse as sample frame. Practical implications – The management of risk is a dynamic phenomenon and the change of management that parallel with its evolution demand a revisiting and revamping over and over again promptly. In order to adapt and survive the volatile environment time and again, the effort to ensure long-term sustainability has to be made by the firm as success and failure can quickly replace one another in a relatively short period. The results highlight the various insight that might be helpful to managers in terms of managing the performance of the firm by concentrating entirely on its risk management and resources managements process. Originality/value – Overall it was shown that only certain dimension of resources within the firm has strong relationship with the performance variation. As such, the company has to ensure that deployment of resources has to be optimized accordingly by focussing on the types of resources that matters so that possibility of improving the outcome of the firm in the volatile global environment can be realized.

Enterprise Risk Management Practices and Firm Performance, the Mediating Role of Competitive Advantage and the Moderating Role of Financial Literacy

“…This research discusses how ERM practices facilitate a firm competitive advantage and performance in the presence of top management financial awareness. A few studies such as (Abd Razak et al 2016;Bogodistov and Wohlgemuth 2017;Krause and Tse 2016) have claimed that ERM practices are aligned with firm resources and capabilities; however, they have missed the actual relationship between ERM and SME performance. In fact, a business firm operates for the main purpose of earning a profit, thus using different strategies to achieve this goal.…”

Evaluation of Risk Management Strategies in Government Institutions: Case Study on Abu Dhabi Municipalities

“…Congruent to the result of this study, previous scholars have shown that risk culture positively influences firm performance (Ernst and Young, 2014;Kimbrough & Componation, 2009;McShane et al, 2011;Ngo & Loi, 2008;Uzkurt et al, 2013). Nursing a solid risk culture within a business firm is fundamental to a corporate sector that is continually faced with vulnerabilities (Abd Razak et al, 2016). The study concluded that there is the need for firms in the government organisation to pay special attention to the development of positive risk culture within their domain.…”

Knowledge transfer for sustainability

“…To analyze the collected data, we used structural equation modeling technique which is a second-generation data analysis technique. The partial least squares technique is a powerful component-based method widely used in prior studies (Abd Razak et al, 2016;Acaray and Yildirim, 2017;Farooq, 2018;Farrukh et al, 2017;Khanmirzaee et al, 2018;Mashahadi et al, 2016;Mohammed et al, 2017;Namagembe et al, 2016;Namagembe et al, 2017;Riaz et al, 2016;Srinita, 2018;Ziyae, 2016).…”