Organisational culture and enterprise risk management: The Australian not‐for‐profit context

Abstract

With the increasing emphasis on risk management in not‐for‐profit organisations, this study is timely in its examination of risk management practices in the Australian not‐for‐profit sector. Specifically, the study investigates the relation between not‐for‐profits’ organisational culture and the maturity of enterprise risk management (ERM) practices. The results show that the organisational culture factors of Outcome Orientation (valuing achievements and results) and Innovation (valuing receptivity and adaptability to change) are associated with the maturity of not‐for‐profits’ ERM. This finding demonstrates the important role that organisational culture plays in shaping ERM practices in not‐for‐profit organisations and the crucial role that leaders play in creating and nurturing such a culture within their organisations. The results also have implications for regulatory policy‐making in, and for, the not‐for‐profit sector.

How Can Enterprise Risk Management Help in Evaluating the Operational Risks for a Telecommunications Company?

“…The results show that it is possible and useful to build a practical methodology (process and method) to help a telecommunications company (TELCO) in evaluating its operational risks, despite the abovementioned key aspects revealed by the literature review. In fact, the results of this research lead to a practical risk evaluation approach for the business of a large company in contrast to other theoretical studies that are focused on the fundamentals of the ERM process but that they do not provide a pragmatic and customized implementation of methodology and practices, even in different sectors or other types of organizations (e.g., Meidell and Kaarboe 2017;Chen et al 2019). In fact, it has been relevant to review various studies on telecommunications companies.…”

Multifaceted not‐for‐profit accountability: Its measurement, cultural context, and impact on perceived social performance

“…Using data from Australian public sector organizations, Baird and Harrison (2017) find that respect for people, innovation, and attention to detail are significantly related to the use of employee empowerment and the use of Total Quality Management. More recently, using data from the Australian NFP sector, Chen, Jiao, and Harrison (2019) hypothesize that outcome orientation, innovation, and attention to detail are associated with the maturity of NFPs’ enterprise risk management (ERM) practices. However, only outcome orientation and innovation are found to significantly influence the maturity of NFP ERM practices.…”

“…In addition, facing an environment of tightened public funding, increased public scrutiny, and the regulatory pressure to adopt New Public Management practices, recent research (e.g. Chen et al., 2019) shows that NFPs with a strong innovation culture are more likely to explore and accept new management practices that are used in the private sector, including the adoption of comprehensive risk management and stakeholder engagement practices, to cater for the demands from multiple external stakeholders. Therefore, it is expected that a culture of innovation stimulates the use of upward accountability mechanisms to funders to ensure compliance and funding continuity, and also encourages closer engagement with clients through the use of downward accountability mechanisms to improve service delivery practices through evaluation, innovation, and change.…”

The effect of organisational culture on organisational performance: the mediating role of intrapreneurship

“…Previous research findings claim that consistency in a company reflects the effectiveness of organisational culture. Chen et al (2019) argue that this is one of the basic factors that can be used for creating a strong organisational culture and improving the performance of employees. However, Cui et al (2018) claim that a high level of consistency is not always directly linked with the commitment and performance of employees.…”

“…Intrapreneurship is a concept whereby people within an organisation are defined as having entrepreneurial characteristics. In the hospitality industry, innovation is considered an important element for hotels for the purpose of remaining part of the game (Chen et al, 2019). In order to successfully struggle with innovation, intrapreneurship is known as an important enabler for enhancing performance and for adopting innovation (Manning, 2018).…”