The Mediating Effect of Top Management Support on the Relationship between Organizational Culture and Enterprise Risk Management Effectiveness among Malaysian Public Listed Companies: A Conceptual Framework

Abstract

Enterprise Risk Management (ERM) is believed as an effective risk management technique in managing risk within an organization and is fast becoming the best practice standard for an organization primarily for an entity that has high-risk exposure such as banking institutions. The purpose of this study is to develop the base knowledge and empirically test the relationship between organizational culture and ERM effectiveness. Also, an element of top management support also will be studied for determining the mediating effect of top management support on the relationship between organizational culture and ERM effectiveness. The data will be collected using a survey questionnaire and will be addressed to chief risk officers (CROs), chief internal auditors (CIAs) and chief financial officers (CFOs). This study tries to develop a conceptual framework by investigating the mediating effects of top management support on the relationship between organizational culture and ERM effectiveness among Malaysian public listed companies. Organizational culture expected to have direct effects and significantly influence ERM effectiveness. Also, top management support expected to mediates the relationship between organizational culture and ERM effectiveness.

Impact of Financial Literacy on Firm Performance of SMEs in Sri Lanka: Mediating Role of Enterprise Risk Management

“…ERM is the mediator variable for the study. Hassan and Yazid (2019) have explained that ERM is the practice of managing the risks in the companies by lowering the unpredictability nature of the returns and managing sustainability in the organizations. This practice includes the understanding, identification, and management of risks in any possible situations in the organization that can harm the operations together with the processes such as internal communication, decision-making, and monitoring (Hassan & Yazid , 2019).…”

“…Hassan and Yazid (2019) have explained that ERM is the practice of managing the risks in the companies by lowering the unpredictability nature of the returns and managing sustainability in the organizations. This practice includes the understanding, identification, and management of risks in any possible situations in the organization that can harm the operations together with the processes such as internal communication, decision-making, and monitoring (Hassan & Yazid , 2019). Researchers have mentioned that ERM is a highly prevailing concept in the current era (Shad, Lai, Fatt, Klemeš, & Bokhari, 2019) and it is highly aided in the management of strategic and operational applications in decision-making in order to gain performance with competitive advantage achievement (Hanggraeni, Ślusarczyk, Sulung, & Subroto, 2019).…”

Organizational readiness and innovation in the Jordanian telecommunication companies

“…(2013) explained that organizational culture is a group of values and norms that come from top to down, and shared between employees. The researchers emphasized the need for managers to examine their organizational culture because it affects employee behavior and hinders EE in readiness and change (Hassan and Yazid, 2019; Samal et al. , 2019).…”