scholarly journals The Role of Enterprise Risk Management in Sustainable Decision-Making: A Cross-Cultural Comparison

2019 ◽  
Vol 11 (10) ◽  
pp. 2939 ◽  
Author(s):  
Xin Liu
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Regulatory Focus ◽  
Interactive Effect ◽  
Enterprise Risk Management ◽  
Prevention Focus ◽  
Management Philosophy ◽  
Cross Cultural Comparison ◽  
Enterprise Risk

The goal of this paper is to examine how cultural differences moderate the effectiveness of an organization’s enterprise risk management (ERM) program in sustainable decision-making. Using an experimental design, this study found that Chinese participants, characterized by a stronger prevention focus, were more proactive in mitigating environmental, social and governance (ESG)-related risks under a loss-framed risk management philosophy, whereas American participants, characterized by a stronger promotion focus, were more proactive in mitigating ESG-related risks under a gain-framed risk management philosophy. This interactive effect of matching the risk management philosophy frame to the participants’ regulatory focus was mediated by their perceived processing fluency. The implications for the literature and practice are discussed.

The Role of Construal Alignment in Enterprise Risk Management

2021 ◽  
Author(s):  
Xin Liu ◽  
Bernard Wong-On-Wing
Keyword(s):  
Risk Management ◽  
Mental Representations ◽  
Construal Level Theory ◽  
Enterprise Risk Management ◽  
Risk Indicators ◽  
Management Philosophy ◽  
Enterprise Risk ◽  
Risk Appetite ◽  
Safety Case

According to the Committee of Sponsoring Organizations (COSO 2017), two important elements of an organization’s enterprise risk management (ERM) framework are its risk management philosophy, and its risk appetite and tolerance. Based on Construal Level Theory (CLT), we posit that the effectiveness of ERM depends on the extent of alignment (non-fit or fit) between mental representations (high versus low construal) of those two ERM elements. We test our hypothesis across two risk cases: safety and confidentiality. Results of our experiment suggest that employees are more proactive when there is a construal fit between the emphasis placed on a firm’s risk management philosophy and its expression of the key risk indicators (KRIs). This benefit is observed in the confidentiality case, but not in the safety case. Implications are discussed.

The Role of U.S. Corporate Boards in Enterprise Risk Management

2006 ◽  
Author(s):  
Carolyn Brancato ◽  
Matteo Tonello ◽  
Ellen Hexter ◽  
Katharine Rose Newman
Keyword(s):  
Risk Management ◽  
Enterprise Risk Management ◽  
Corporate Boards ◽  
Enterprise Risk

scholarly journals Risk Management Support and Organizational Performance: The Role of Enterprise Risk Management as Mediator

2017 ◽  
Vol 2 (2) ◽  
pp. 43
Author(s):  
Azreen Roslan ◽  
Nur Diyana Yusoff ◽  
Hayati Mohd Dahan
Keyword(s):  
Risk Management ◽  
Organizational Performance ◽  
Best Practice ◽  
Enterprise Risk Management ◽  
Senior Management ◽  
Mediating Effect ◽  
Management Support ◽  
Enterprise Risk ◽  
Economic Reality

Risk is inherent in all parts of the organization and if it is not efficiently managed by the senior management it will affect the confidence and expectations of the stakeholders. Enterprise Risk Management (ERM) is said as a best practice technique to evaluate and manage all these risks in this new economic reality. Therefore, organizations practicing ERM are more prepared in managing the feasible threats. In fact, there is a general consensus by scholars and researchers that organizations practicing ERM will improve the organizational performance. However, empirical evidence regarding this matter is still considered scarce. As such, the purpose of this paper is to investigate the mediating effect of ERM on risk management support and organizational performance among public listed companies.

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