Enterprise Risk Management in Non-Profit Organization

Bali, Selçuk; Uslu, Yeter Demir

doi:10.4018/978-1-5225-5481-3.ch038

Cited by 1 publication

(5 citation statements)

References 7 publications

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“…This WI also operates in a positive internal environment where risks are monitored and managed by a committee, which associates risk events and risk assessments through their respective objectives. NPOs that successfully integrate risk management with strategic planning and governance have been proven to be highly capable of meeting their objectives and mission (Bali and Uslu, 2017). However, WI 9 lacks focus on its risk identification goals and objectives, which are not widely disseminated throughout the entire organisation.…”

Section: Resultsmentioning

confidence: 99%

“…This type of support includes establishing risk management teams, periodically reviewing risk management plans, adhering to risk management policies and addressing issues raised by employees. Managers at NPOs should design management control systems to ensure effective and efficient use of resources (Bali and Uslu, 2017), which helps NPOs fulfil their purpose of providing high-quality services to the community (Huang and Hui-Kuang Yu, 2011). Huang and Hui-Kuang Yu (2011) found that NPOs using innovative processes can avoid operational risks.…”

Section: Resultsmentioning

confidence: 99%

“…To reach their goals and objectives, NPOs need to manage their risks according to their strategic planning (Ostrower and Stone, 2006). These risks include competition, economic, environmental and investment risks, fraud, lack of volunteers, reduced fund flow, regulatory pressures and reputation and public scrutiny (Bali and Uslu, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Moreover, the ever-changing global economic conditions, technological advancements and shifts in the legal environment all underscore the importance of ERM in reducing risks and guaranteeing the survival of organisations, including NPOs (Musser, 2019). Bali and Uslu (2017) argued that NPOs operate in uncertain environments involving an infinite range of risks. The failure of high-profile NPOs in the USA between 2008 and 2012 (amounting to more than 1,000 cases) has also increased the surveillance over recent NPOs (Bilich, 2016) by regulatory bodies, donors and the public, which can be perceived as a new form of risk (i.e.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Herman et al (2004) emphasised that risk management discipline and practices should be observed in every function of NPOs, including strategic planning, programme evaluation, financial management and fund development. Bali and Uslu (2017) stated that NPO managers should design a management control system to guarantee effective and efficient use of resources. However, Potocan et al (2017) argued that most NPOs do not use management solutions, such as benchmarking, customer relationship management, mission statement vision, balanced scorecards and shared service centres, to pursue their objectives.…”

Section: Literature Reviewmentioning

confidence: 99%

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Analysis of enterprise risk management practices in Malaysianwaqfinstitutions

Yakob

Abdullah

Yakob

et al. 2021

IMEFM

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Purpose This study aims to assess enterprise risk management (ERM) practices in waqf institutions (WIs) along with their strengths and weaknesses; highlight ERM trends in WIs; and determine the best ERM practices for these institutions. Design/methodology/approach Data were collected via structured interviews with nine WI managers in Malaysia. A standardised questionnaire was adopted for the interviews, which focussed on ERM implementation in WIs. The collected data were analysed in three steps, namely, data reduction, data display and verification/conclusion. The frequency distribution of these data were then illustrated and the mean values and differences of the studied groups/variables were examined. Findings WIs have a sub-optimal ERM implementation, whose aspects need to be improved over time. These institutions have focussed on their ERM practices at the strategic level yet ignored those at the operational level. Specifically, WI officers have well-defined internal environments and objectives, but risk monitoring, which ensures effective implementation of ERM, is lacking. The presence of risk management committees and units may be linked with the successful implementation of ERM. However, ERM knowledge and top management support do not show clearly associations with ERM implementation. WIs should focus on improving their ERM implementation governance. Research limitations/implications Findings underscore the need for WIs to launch a formal ERM programme and for relevant stakeholders to create the appropriate infrastructures that support ERM implementation, including amended rules, ERM policies and allocated funds for training and education, to promote ERM implementation knowledge and awareness. The successful implementation of ERM not only improves the service quality, sustainability and performance of WIs but also promotes the national waqf agenda as a key economic driver. Originality/value ERM in non-profit organisations, such as WIs, has received limited research attention relative to that in profit-driven organisations despite having unique risks. To the best of the knowledge, this study is the first to identify those trends that explain ERM practices and to determine the ERM best practices of WIs.

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Section: Resultsmentioning

confidence: 99%