How the enterprise risk management function influences decision-making in the organization – A field study of a large, global oil and gas company

Meidell, Anita; Kaarbøe, Katarina

doi:10.1016/j.bar.2016.10.005

Cited by 55 publications

(66 citation statements)

References 33 publications

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“…This is in line with Meidell and Kaarbøe (2017) who revealed that ERM reduces different types of cost related to operation, material, and supply, which in turn leads to production of products and services at lower cost; thus, the firm can gain competitive advantage. Similarly, Yilmaz and Flouris (2017) also claimed that ERM practices facilitate SMEs to gain a competitive position in the market by offering lower-priced products.…”

Section: Discussionsupporting

confidence: 62%

“…In addition, ERM practices are not only vital for financial performance but also improve the non-financial performance of firms (Rasid et al 2014). The top management team is responsible for organizational strategy, cost reduction and long-term planning, and from this perspective, they need to be aware of ERM practices, which had a direct influence on the organizational strategic decision-making process, costs, and activities (Meidell and Kaarbøe 2017). It is argued that implementation of ERM practices can move an organization toward different means of success.…”

Section: Erm and Competitive Advantagementioning

confidence: 99%

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Enterprise Risk Management Practices and Firm Performance, the Mediating Role of Competitive Advantage and the Moderating Role of Financial Literacy

Yang

Ishtiaq

Anwar

2018

JRFM

168

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In the current turbulent market, firms spend lots of tangible and intangible resources to gain competitive advantage and superior performance. Prior studies have discussed several determinants of competitive advantage and performance, particularly in developed economies, whereas small-and medium-sized enterprises (SMEs) in emerging economies have received minor attention. This study examines the mediating role of competitive advantage between enterprise risk management practices and SME performance and the moderating role of financial literacy between enterprise risk management practices and competitive advantage. A structured questionnaire is used to collect data from 304 SMEs operating in the emerging market of Pakistan. The hypotheses of the proposed study are tested through Structural Equation Modeling (SEM) in Analysis of a Moment Structures (AMOS). The results indicate that enterprise risk management practices significantly influence competitive advantage and SME performance. Competitive advantage partially mediates the relationship between enterprise risk management practices and SME performance. Additionally, financial literacy significantly moderates the relationship between enterprise risk management practices and competitive advantage. Firms are advised to implement formal enterprise risk management practices to gain competitive advantage and superior performance. Top managers need to have enough financial education that they will be able to perform risk management practices in an efficient way to gain a competitive position in the market. Implications for practices have been discussed in detail.

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Section: Discussionsupporting

confidence: 62%

Section: Erm and Competitive Advantagementioning

confidence: 99%

Enterprise Risk Management Practices and Firm Performance, the Mediating Role of Competitive Advantage and the Moderating Role of Financial Literacy

Yang

Ishtiaq

Anwar

2018

JRFM

168

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“…Top management is also important (Arnold, Benford, Canada, & Sutton, 2011;Barton & MacArthur, 2015;Lundqvist, 2014;2015;Meidell & Kaarbøe, 2017;Tekathen & Dechow, 2013;Viscelli, Hermanson, & Beasley, 2017). Top management affects the formation of risk cultures because it influences the adoption of specific risk management procedures (Meidell & Kaarbøe, 2017), accountability within the organization (Cohen, Krishnamoorthy, & Wright, 2017), and organizational flexibility (Arnold et al, 2011;2015). Cohen et al (2017) found a strong relationship between ERM implementation and the financial reporting process based on a survey of CFOs, audit partners, and audit committee members of US companies.…”

Section: Factors That Promote or Obstruct The Introduction Of Ermmentioning

confidence: 99%

Enterprise Risk Management in Accounting Research: A Literature Review

Fujita¹,

Iwasawa²,

Yoshida³

2018

JMAA

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This study aims to clarify the characteristics of studies on enterprise risk management (ERM) in accounting and present future research subjects through a literature review. There are few review studies in accounting, compared to adjacent fields such as management and finance. We selected 25 academic papers from the EBSCO database, and conducted a systematic review from three points of view: (1) ERM frameworks; (2) factors that promote or obstruct the introduction of ERM; and (3) the impact of ERM. We find that: (1) there are the conflicting results for ERM frameworks; (2) research on ERM frameworks is one of the features in accounting; and(3) accounting and finance journals follow different topics of interest related to ERM. In addition, this study contributes to the development of ERM research in accounting by clarifying and organizing the research on the introduction of ERM from the perspective of accounting, clarifying the characteristics of ERM research in accounting through a comparison with studies in adjacent fields, and identifying the conflicting findings on the impact of introducing ERM.

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“…The first provides insights into ERM practices in specific organisation settings through the fieldwork/case study approach, in both the for-profit (e.g. Arena et al, 2010;Meidell & Kaarbøe, 2017;Mikes, 2009) and public sectors (e.g. Woods, 2009).…”

Section: Empirical Research On Ermmentioning

confidence: 99%

Organisational culture and enterprise risk management: The Australian not‐for‐profit context

2019

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With the increasing emphasis on risk management in not‐for‐profit organisations, this study is timely in its examination of risk management practices in the Australian not‐for‐profit sector. Specifically, the study investigates the relation between not‐for‐profits’ organisational culture and the maturity of enterprise risk management (ERM) practices. The results show that the organisational culture factors of Outcome Orientation (valuing achievements and results) and Innovation (valuing receptivity and adaptability to change) are associated with the maturity of not‐for‐profits’ ERM. This finding demonstrates the important role that organisational culture plays in shaping ERM practices in not‐for‐profit organisations and the crucial role that leaders play in creating and nurturing such a culture within their organisations. The results also have implications for regulatory policy‐making in, and for, the not‐for‐profit sector.

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How the enterprise risk management function influences decision-making in the organization – A field study of a large, global oil and gas company

Cited by 55 publications

References 33 publications

Enterprise Risk Management Practices and Firm Performance, the Mediating Role of Competitive Advantage and the Moderating Role of Financial Literacy

Enterprise Risk Management Practices and Firm Performance, the Mediating Role of Competitive Advantage and the Moderating Role of Financial Literacy

Enterprise Risk Management in Accounting Research: A Literature Review

Organisational culture and enterprise risk management: The Australian not‐for‐profit context

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