Conceptualising risk culture on enterprise risk management (ERM) implementation in construction companies / Wong Ching Ching ... [et al.]

Wong, Ching Ching and Mohd Rahim, F.A. and Loo, Siaw Chuing and Zainon, N. and Aziz, N.M. (2020) Conceptualising risk culture on enterprise risk management (ERM) implementation in construction companies / Wong Ching Ching ... [et al.]. Built Environment Journal (BEJ), 17 (1). pp. 59-70. ISSN 1675-5022

Abstract

In today's global economy, inadequate risk management and lack of risk culture can threaten a company’s viability. Since construction industry is subjected to uncertainty, construction Public Listed Companies (PLCs) need to implement Enterprise Risk Management (ERM) as an effective technique in managing risk holistically. Although the importance of ERM is widely accepted, the influence of risk culture in its’ implementation is unexplored. This paper presents a conceptual model that shows the relationship between risk culture and ERM implementation. The dependent variable is ERM implementation, consist of four dimensions namely risk identification and risk assessment; risk treatment; monitor and consult; communicate and consult. The independent variables, risk culture compromise of six dimensions, which are risk policy and risk appetite; key risk indicators; accountability; incentives; risk language and internal relationships. This study aims to empirically test the relationship between risk culture and ERM implementation among Malaysian construction public listed companies. Quantitative method through questionnaire survey is adopted as data collection for this study. Risk culture is expected to have direct effects and significantly influence ERM. This study contributes to enhance the body of knowledge in ERM especially in understanding significant of risk culture that influence its’ implementation from Malaysian perspective.

Metadata

Item Type: Article
Creators:
CreatorsEmail / ID. Num
Wong, Ching ChingUNSPECIFIED
Mohd Rahim, F.A.UNSPECIFIED
Loo, Siaw ChuingUNSPECIFIED
Zainon, N.UNSPECIFIED
Aziz, N.M.UNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Risk management. Risk in industry. Operational risk
H Social Sciences > HD Industries. Land use. Labor > Construction industry
Divisions: Universiti Teknologi MARA, Shah Alam > Faculty of Architecture, Planning and Surveying
Journal or Publication Title: Built Environment Journal (BEJ)
Journal: UiTM Journal > Built Environment Journal (BEJ)
ISSN: 1675-5022
Volume: 17
Number: 1
Page Range: pp. 59-70
Item ID: 30046
Uncontrolled Keywords: Enterprise risk management, Risk culture, Construction companies
URI: http://ir.uitm.edu.my/id/eprint/30046

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