Conceptualising risk culture on Enterprise Risk Management (ERM) implementation in construction companies. Built Environment Journal, 17 (1): 5. pp. 58-69. ISSN 1675-5022 (2020)
Abstract
In today's global economy, inadequate risk management and
lack of risk culture can threaten a company’s viability. Since
the 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 PLCs. The quantitative method through a questionnaire survey is adopted
as a data collection for this study. Risk culture is expected to have direct effects and significantly
influence ERM. This study contributes to enhancing the body of knowledge in ERM especially in
understanding significant risk culture that influences its’ implementation from a Malaysian
perspective.
| Item Type: | Article |
|---|---|
| Keywords: | Enterprise risk management (ERM), Risk culture, Construction companies |
| Taxonomy: | By Subject > Architecture, Planning & Surveying > Construction Management |
| Local Content Hub: | Subjects > Architecture, Planning & Surveying |
| Depositing User: | Nurul Farihah Sarmin Panut |
| Date Deposited: | 25 Jul 2020 12:03 |
| Last Modified: | 25 Jul 2020 12:04 |
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