Towards Managing Firm Performance through Enterprise Risk Management Practices and Staff Competence: An Empirical Study from the Banking Sector

Abstract

This study was aimed to measure the impact of enterprise risk management practices on firm performance following the moderation of staff competence. The present study proposed five hypotheses, three direct and two moderating. For measuring hypotheses and objectives, the current research targeted bank officers in the Kingdom of Bahrain's banking sector. A total final sample of 349 was used in primary analyses selected through simple random sampling. Current research shows significant positive effects of risk culture and risk knowledge sharing on the firm`s (financial and non-financial) performance of banks in the Kingdom of Bahrain. Similarly, the first moderation strengthens the relationship between risk knowledge sharing and firm performance through staff competence. In addition, the second moderation hypothesis does not strengthen the relationship between risk culture and firm performance with the moderating effect of staff competence. The current research findings are supported under the resource-based view with several theoretical and practical implications for researchers and industry practitioners.

The Components of Enterprise Risk Management and Financial Performance of the Non-Financial Firms through Mediation of Corporate Reputation

“…Yang et al (2018) have emphasized the crucial role played by competitive strategies in achieving optimal financial performance for businesses. Previous studies have minimally explored reputation as a mediating variable between risk practices and firm performance, with no identified mechanism investigating the indirect relationship through corporate reputation (Ogalo, 2021;Yang et al, 2018). The outcomes of this survey have the potential to heighten awareness among investors and regulators regarding the worth of effective management of risk, particularly in Pakistani context.…”