Ching, W C; Mohd-Rahim, F A and Chuing, L S (2021) Enterprise risk management and risk culture in construction public listed companies. Journal of Construction in Developing Countries, 26(2), pp. 17-36. ISSN 1823-6499
Abstract
Inadequate risk management and lack of risk culture can expose a company to unexpected risk events, which can negatively affect its performance. However, there are inconsistencies in suitable dimensions to measure the enterprise risk management (ERM) construct, as well as insufficient embedding strategies for risk culture. This study aims to identify the ERM practices and risk culture dimensions among the Malaysian construction public listed companies (PLCs). The roles of top management and chief risk officer/risk manager in influencing ERM and risk culture are also explored. A total of 46 annual reports and 10 interviews of industry practitioners were analysed using content analysis. The analysis of the annual reports found that risk policy and risk appetite/tolerance, monitoring key risk and accountability are the three dimensions of risk culture. In addition, based on the interviews, reward and recognition and internal relationships were identified as the two dimensions of risk. Top management and risk manager were found to be the primary drivers of ERM programme and risk culture in construction PLCs. The results of this study are used to formulate a survey instrument for the subsequent data collection to test the proposed theoretical model.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | enterprise risk management; risk culture; top management; risk manager; public listed companies; document analysis |
| Index terms: | practitioner, top management, risk culture, accountability, programme, survey, annual report, content analysis, strategy, interview, dimension, public listed companies, risk management, risk manager, monitoring, enterprise risk management, document analysis |
| Subjects: | financial risk, management, liability law, project controls, control systems, practitioner, data collection methods, risk assessment, business, data science, data analysis and analytics, health monitoring assessment and metrics, economic analysis |
| Topics: | Governance, Risk Management, Roles and Professions, Research Practice, Health and Safety, Cost Management, Business Strategy, Time Control, Site Management, Organizational Design, Legal Issues |
| Descriptive scope: | 4 PCEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here