Enterprise Risk Management: Factors Associated with Effective Implementation

This study extends emerging research on enterprise risk management by examining organizational factors (such as the role of a Chief Risk Officer (CRO), the role of an Audit Committee (AC), and Top Management (TM) support) associated with its implementation. The major findings indicated a positive and significant relationship between the deployment of an ERM system and the presence of; a CRO, an AC, and TM support. Moreover, there was a strong positive correlation between the presence of a CRO and an AC, suggesting that organizations with a CRO were more likely to also have an AC and vice versa. The study findings are important for decision makers in organizations implementing strategic risk management, as they suggest that organizations need to engage a CRO, an AC, and enlist the support of TM in the deployment of effective risk management policies and mechanisms.