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Critical Success Factors for effective risk management procedures in financial industries : A study from the perspectives of the financial institutions in Thailand
... Furthermore, there is no direct effect and a negligible relationship between top management support and commitment and risk management effectiveness among Thai financial institutions. However, the findings do suggest that top management support and commitment are critical to effective risk management (Ranong & Phuenngam, 2009). Most studies looked at how top management support directly affects the dependent variables (Ngundo, 2014;Ranong & Phuenngam, 2009). ...
... However, the findings do suggest that top management support and commitment are critical to effective risk management (Ranong & Phuenngam, 2009). Most studies looked at how top management support directly affects the dependent variables (Ngundo, 2014;Ranong & Phuenngam, 2009). On the other hand, several studies looked at the direct or indirect effects of top management support on the variables being studied (Togok, 2016). ...
... Organizational Structure: While research on the effectiveness of ERM is scarce, most previous studies on the effects of organizational structure have focused on financial performance (Laisasikorn & Rompho, 2014), risk management success (Agoi, 2013), and effectiveness of risk management (Carey, 2011;Ngundo, 2014;Ranong & Phuenngam, 2009). Togok (2016) found no significant relationship between organizational structure and ERM effectiveness in publicly traded Malaysian companies. ...
SMEs are crucial to the economic growth of many countries, particularly developing ones like Malaysia. SMEs have contributed significantly to economic growth but they also often struggle with problems related to poor management, which increases the risk of failure and closure. Effective risk management is essential in sustaining the long-term sustainability of SMEs and improving managerial performance. This study investigates the enterprise risk management (ERM) practices used by Malaysian SMEs in the manufacturing sector. The factors influencing the risk management behaviors and practices of SME manufacturing workers and their compliance with risk management protocols are examined in this study using a mixed-methods approach. This study focuses on employee behavior to better understand how organizational culture affects risk management techniques in SMEs. To design effective reward and recognition programs, this research also examines the psychological components of risk management while accounting for the organizational, societal, and financial challenges that followed the 2008 financial crisis. The study also examines the impact of organizational structure on the efficacy of risk management initiatives in small and medium-sized enterprises. The practical findings of the study are expected to demonstrate the extent to which ERM influences organizational effectiveness in Malaysia's SME manufacturing sector. This study intends to equip industry participants with the knowledge and confidence necessary to implement ERM successfully in their operations by offering insights into the factors that encourage and impede ERM adoption and its impact on organizational performance. This research advances ERM practices among SMEs and strengthens Malaysian businesses' resilience and risk awareness.
... In addition, business intelligence tools have been used to enhance risk management, as confirmed by Dash Wu et al. (2013). Not only that, there is one more study that confirms IT as one of the critical success factors to increase the effectiveness of risk management procedures (Na Ranong et al., 2009). From the studies above, the fourth hypothesis proposed of this study is as follow: ...
... Internal Audit positively affects ERM, as supported by De Zwaan et al (2011) in Internal Audit involvement in Enterprise Risk Management that mentions that IA has some impacts on the ERM implementation. IT positively affects ERM implementation, as supported by Na Ranong et al (2009) as they described that IT is one of the critical success factors to increase the effectiveness of risk management produces. It is found that having good IT capability in place will help to accelerate ERM implementation as it helps in regular and real time monitoring, especially for the companies which have many branches all over Indonesia. ...
... The unit analysis tested has shown result that the existence or non-existence of Internal Audit has failed to positively affect firm performance. IT has significant influence on Firm Performance, as supported by Na Ranong et al (2009) as the result shows that having good technology in place will enable the companies to drive more effectiveness and efficiency in daily operations. In addition, IT also helps top management to create better informed decisions through big data and data visualization management. ...
... According to Carey (2001), in an organization's operation, the design and growth of risk training programs and courses and the engagement of personnel in responding to an early warning system are among the abilities to answer to changing conditions. Training policies can help organizations to reinforce the levels of knowledge, understanding, and skills of people related to ERM (Ranong & Phuenngam, 2009;Yaraghi & Langhe, 2011). Thus, it ensures performance by including such practices as simulated case studies, seminars, training schools, and role-playing exercises. ...
... Offering data security by personnel level, reducing a user's access by time, line of commerce, commercial activity, and personal risk, and using IT instruments to gather information previously utilized so that organizations can learn through experience and prevent duplicating the same faults. Ranong and Phuenngam (2009) indicated that IT is the most critical factor in the success of an organizational risk management system. Oliveira et al. (2019) specified technology as one of the critical success factors for ERM. ...
... Thomya and Saenchaiyathon (2015) stated that as ERM needs to collaborate cross-functionally to analyze and find the way to manage uncertain events within a dynamic environment, therefore organization that has characteristic of continuously learning could be so helpful. Ranong and Phuenngam (2009) exposed the significance of culture as one of the critical success factors in the efficient risk management. Therefore, to implement and improve ERM in organizations, the culture of the organizations should support knowledge sharing, learning, communication, and risk awareness, and overall they should have a risk culture. ...
In the current dynamic environment, organizations are exposed to many risks from different directions. Therefore, this study using the theoretical lens explored the effect of enterprise risk management (ERM) on both financial and non-financial firm performance and the moderating role of intellectual capital (IC) and its dimensions on the relationship between ERM and firm performance. To test the study hypotheses, a questionnaire survey was distributed to 84 Iranian financial institutions. Structural equation modeling (PLS software) was used to analyze the data statistically. The findings revealed that ERM had a positive relationship with firms’ performance. The results also showed that the overall IC had a moderating effect on ERM-firm financial performance. However, regarding components of IC, knowledge, and information technology (IT) had a positive and significant moderating effect while training, organizational culture, and trust did not affect. This study provides an insight into the impact of ERM in recent years on non-financial performance and the influence of intangible assets on ERM and its function. The model developed in the current study and result can be extended and implemented to other organizations in developing countries.
... In addition, the researchers identified the low level of top management support in risk management process will led to the insufficient allocation of resources and also lack of involvement and ineffective decision making by top management influence risk management effectiveness. In contrast, the relationship between commitment and support from top management and risk management effectiveness among Thai financial institutions has not significant and no direct effect exist, however, the result shows that commitment and support from top management is important to risk management effectiveness (Ranong & Phuenngam, 2009). ...
... Most of the researchers tested the direct effects of top management support on dependent variables (Ngundo, 2014;Ranong & Phuenngam, 2009), however, top management support also have been tested with multiple effect either the direct effect or indirect effect on measured variable (Togok, 2016). A study done by (Togok, 2016) found that tone from the top has significant and direct effect on ERM effectiveness and also found that tone from the top has indirect effect with ERM effectiveness which by organizational culture. ...
... In addition, (Makarova, 2014) conducted study on the effectiveness of risk management implementation in Russian companies and found that was a significant relationship between training and risk management effectiveness. On the other hand, (Ranong & Phuenngam, 2009) found that the relationship between training and risk management effectiveness in Thailand financial institution was not significant, however the result conclude training is important in order to improve risk management effectiveness. ...
Abstract: During the last financial crisis there were many companies suffered losses despite their engagement in enterprise risk management (ERM). Most of the literatures on ERM effectiveness give little attention to the elements of human and organizational factors.
Therefore, it is important to give a close attention to current ERM practices and measure the effectiveness of ERM frameworks in the context of Malaysia especially by considering one of the elements namely organizational factors. The main objective of this study is to develop a conceptual model that shows relationship between organizational factors and ERM effectiveness. An extensive literature search was employed for this study. This study contributes to enhance the body of knowledge in ERM specially in understanding significant
organizational factors that influence ERM effectiveness from Malaysian perspective.
Keywords: Enterprise Risk Management (ERM) ∙ Effectiveness ∙ Structural Equation Modelling (SEM) ∙ Human Factors ∙ Organizational Factors
... Some purists suggested that the term risk manager mostly suited chief executive officers (CEOs) although CEOs lacked interest in the same. However, the term was so impressive that various outsiders claimed that stockbrokers, investment counsels, physicians, boards of health or lawyers were also risk managers (Ranon, and Phuenngam, 2009). ...
... It is hence important that all individuals take part in effecting a company's risk management strategy and implementation, rather than leaving the responsibility to be solely shouldered by the risk management department. Ranon and Phuenngam (2009) observe that shareholder value and corporate governance are the most important drivers in risk management implementation. ...
The study assessed the determinants of Enterprise Risk Management Implementation in Selected Enterprises in the Southern Highland Zone. The study specifically focused on enterprise size, capital invested, enterprise ownership, enterprise products/service offered, their influence on ERM implementation. Using mixed research methods, questionnaires and an interview guide were used to obtain primary data from selected companies. The research design employed was correlation design. Data were then analyzed using descriptive (frequencies and percentage) and inferential (regression analysis) statistics. Findings reveal that Environmental risks (22%), unpredictable changes, health risks (17%), credit risks (15%), market risks (11%) were the major perils facing firms. Regarding the influence of the nature of products or services provided by a firm on ERM, a weak positive correlation value (r 0.062, p=0.543) was established, which indicates a weak relationship between products/services offered and the implementation of ERM. A high positive relationship correlation was also revealed between enterprise size and capital invested in ERM implantation. Lastly, there was a negative relationship between firm ownership and ERM implementation. It was therefore recommended as per study findings Management should ensure prompt implementation of ERM activities in organizations by recruiting competent finance and resource managers. Employee training programs should be conducted by risk management consultants and not directorate managers. Also. the government should develop policies that compel firms to implement risk management measures. A holistic ERM structural framework that clearly defines implementation standards for all firm categories should also be established.
... One of the latest risk management approaches that get great attention currently and help firms to manage risk effectively is enterprise risk management (ERM) [8]. Effective enterprise risk management can bring huge benefits to all kinds of organizations irrespective of their industry, size, scope, and nature as per numerous literature and studies [8], [9], [10], [11]. These benefits are: create greater management consensus, minimize earnings volatility, decrease costs and losses, increase risk management accountability, improve profitability and earnings, improve risk-adjusted decision-making, enhance noble risk reporting and communication, help to attain competitive advantages, lead to a better resource allocation, improve owners' satisfaction and improved control of an enterprise which also contribute to improved shareholder value [12], [13], [14], [15, [16], [17, [18], [19], [20]. ...
... One of the risk management approach recently got more media consideration is enterprise risk management according to [8]. According to several studies effective enterprise risk management can offer enormous benefits to all kinds of organizations irrespective of their industry, dimension, range, and type [10]. Besides these benefits of ERM, today's ever-changing and turbulent environment requires a balanced multidisciplinary group and portfolio of risk as it is very challenging to manage companies in this type of environment. ...
Recently, even though, more emphasis is given to enterprise risk management (ERM) worldwide to manage risks, there is scant knowledge and empirical evidence on ERM implementation of financial institutions in Ethiopia as there are only limited research works or literature related to ERM trends in Ethiopia. Thus, the main objective of this study was to assess the enterprise risk management implementation of financial institutions in Ethiopia. This study adopted a descriptive research design. In order to obtain relevant data for the study, both primary and secondary data sources were employed. The primary data were gathered through questionnaires while secondary data were extracted from different relevant sources such as books, journals, and websites. The population of the study was the entire banks and insurance companies in Ethiopia. At the time of the survey, there were 35 financial institutions (18 banks and 17 insurance companies) registered with the National Bank of Ethiopia and operating in Ethiopia. The unit of analysis were these institutions’ headquarter office chief risk officers, chief financial officers, senior managers, technical staff of risk management units and other employees whose work is related to risk management in each of the selected institutions. The sample responds were selected using a purposive sampling technique and a total number of sample respondent were 180. The data collected was analyzed and presented using descriptive statistics and the results were presented using pie charts, tables, and graphs. The results of the analyses revealed that the majority of the financial institutions in Ethiopia involved in the survey have a formal ERM in place even though the extent of ERM adoption varies from institution to institution. However, the results of the analysis show that ERM implementation level is low and in its infant stage in financial institutions in Ethiopia and these financial institutions have also less developed ERM practices than international organizations.
... Simply put, information implies benefits for decision-making in risk management. Ranong and Phuenngam (2009) identified several essential success factors that determined successful and efficient procedures related to risk management among 111 organizations located in Thailand. As a result, the study had listed IT as one of the seven critical success factors, which can function as essential parameters to enhance the efficiency related to risk management procedures. ...
... In addition, among them, none had investigated the links between ERM, IT, and competitive advantage. As competitive advantage is supported by IT (Feeny and Ives, 1990;Hunter, 2003, Leornard-Barton, 1995Lai et al., 2006;Cakmak and Tas, 2012;Gunasekaran et al., 2017, Bhatt andGrover, 2005) and considering the fact that IT, mostly, has enhanced ERM system (Yaraghi and Langhe, 2011, Ranong and Phuenngam, 2009, Arena et al., 2010, Elahi, 2013, it could be hypothesized that companies with advanced IT level displayed stronger effect of ERM on competitive advantage. This notion has been missed by previous scholars, and therefore, this study had gathered sufficient data to bridge this research gap by considering IT as an influential factor upon the ERM-competitive advantage link. ...
The main purpose of this paper is to examine the influence of Enterprise Risk Management (ERM) on Competitive Advantage (CA) by moderating role of information technology dimensions including Information Technology (IT) strategy and Information Technology (IT) structure. A total of 84 valid questionnaires were obtained through self-administered survey conducted at Iranian financial institutions. Partial Least Squares Structural Equation Modelling (PLS-SEM) approach was conducted for the analysis of data and hypotheses testing. The findings of this study showed that ERM had a positive relationship with the firms’ competitive advantage. The results also showed that IT strategy and IT structure had a direct effect on the competitive advantage as a well as moderating effect on ERM-competitive advantage relationship. This study extends on previous ERM studies by considering Iran as a developing country which is neglected among previous empirical researches. It also extends previous ERM works by empirically evaluating ERM, IT, competitive advantage and relationships among them. This paper provides insights into the value of implementation of ERM among organizations which could lead to improve competitive advantage. In addition, this study provides implication in terms of manager's planning and decision making to consider IT as one of the critical success factors of ERM practices.
... The acceptance that critical success factors (CSFs) oriented in erroneous directions can become barriers in the implementation and development of ERM has also led to the introduction of a part of this type of approaches in the review presented in Table 5.1. In the studies on this subject (Na Ranong & Phuenngam, 2009;Hosseini et al., 2016;Kikwasi, 2018;Gumay et al., 2020) frequently appear as important: management commitment and support, communication, organizational structure, training MR, and the availability of resources (Stoica, 2022: 191). ...
Educational well-being is an innovative, multidimensional, complex, inspirational, and fluid concept, which generates performance at the individual and the institutional level, with direct effects on the quality of life. It is also a challenge and a responsibility for the management and leadership of any organization since innovative techniques, tools, and practices have to be developed and applied in order for educational well-being to be successful in the increasingly hostile, turbulent, volatile, and ambiguous environments the modern world is facing with profound and rapid transformations on all levels of social life. For these reasons, well-being has become an important field of scientific research in education. It requires a social and emotional remodeling of all actors involved, so that learning is sustainable and effective, based on achieving motivation, satisfaction of one’s work and life. Thus, in the context of creating a culture of well-being in schools or universities, it is necessary to design the mechanisms, relationships, rules, resources, and managerial processes through which the activities generating well-being are well thought out and monitored, aiming for an optimal allocation of all categories of resources in order to achieve the objectives. The paper aims to develop an innovative management and leadership process, based on human values that favor the creation of an optimal social and psychological climate for the development of well-being in any school or university, as a premise that generates value, efficient learning, and sustainable development. Thus, during the work I highlighted the need to identify the objectives, priorities, and key stakeholders, leading to the development of a strategy and an implementation plan, as well as monitoring the progress regarding the improvement areas. In this respect, I developed a well-being model based on four pillars, i.e., learning, support, work, and life. The research methodology is based on scientific investigation of specialized literature, indexed in international databases, through the analysis of numerous articles, studies, and indexes related to this field, published between the years 2019 and 2022. The on-going, empirical investigation involved applying a questionnaire addressed to teachers from schools and universities in the South-West Oltenia region and analyzing the response data.
... The acceptance that critical success factors (CSFs) oriented in erroneous directions can become barriers in the implementation and development of ERM has also led to the introduction of a part of this type of approaches in the review presented in Table 5.1. In the studies on this subject (Na Ranong & Phuenngam, 2009;Hosseini et al., 2016;Kikwasi, 2018;Gumay et al., 2020) frequently appear as important: management commitment and support, communication, organizational structure, training MR, and the availability of resources (Stoica, 2022: 191). ...
More than a decade after the implementation of the first specific elements of ERM (Enterprise Risk Management), organizations in Central and Eastern Europe face barriers in the development of Integrated Risk Management systems. Since Health Insurance Entities (HIEs) fall into the above statement, the purpose of the study is to identify the main specific barriers and their importance in developing an ERM system. In order to achieve the goal, this study used a research methodology based on a questionnaire sent to over 200 targeted entities from the Central and Eastern European countries. The results reflect an order of importance of the eight selected barriers, starting from the lack of an IT program for risk analysis, which hinders the development of ERM the most, to poor collaboration between internal departments, that presents itself as a minor obstacle. The research allows the proposal of a conceptual, logical-theoretical model that can be a solution for improving ERM within the HIEs by acting on the identified barriers.
... In addition, the number of papers on the practice of risk management published in scientific journals is relatively limited. Many of them discussed factors that determine the effectiveness of risk management, for example, Ranong & Phuenngam (2009), Zhao et al. (2013, Cormican (2014), Gottwald & Mensah (2015), and Kikwasi (2018). This situation hinders the effort to establish a strong theoretical foundation for a comparative study (between private and public organizations) on the effectiveness of risk management. ...
Purpose – The effectiveness of risk management in an organization depends largely on its organizational culture as revealed in its governance structure and organizational process. The research question of this study is how to develop strategy to improve the effectiveness of risk management under the constraints of a given organizational culture. The objective of this study is to show that there are fundamental differences and similarities between the governance structure and organizational process that significantly influence the effectiveness of risk management in private companies and the one in public sector organizations. Methodology – To achieve the objective, legal documents of major public and private organizations are reviewed and key resource persons working for the organizations are interviewed. Findings – This paper reports preliminary results that identify several important dimensions of governance structure and organizational process in both sectors that crucially influence the effectiveness of risk management. Originality – Studies on the similarities and differences between public and private organizations in implementing risk management have been very rare. Very few studies explicitly address the effectiveness of risk management in the perspective of the comparative study. This study has never been carried out before, at least in the Indonesian context.
... Na Ranong and Phuenngam (2009) Focusing on the strategies in place within the economic environment (ILO 2020) The ability of companies to survive the economic crisis and most risks depends on flexibility and adaptation to commercial operations ...
This study aims to identify and rank the critical factors affecting risk management from the perspective of top and Lower Management in Jordanian industrial companies. Based on a rigorous literature review, critical factors affecting risk management are factors related to (1) flexibility and adaptation in the economic environment; (2) company characteristics; (3) external audit quality; (4) government rules and regulations; (5) top management and the board of directors; (6) organizational structure; (7) internal audit effectiveness; (8) trust; (9) human resources efficiency and training (10); communications (11); information technology (12); and the company’s culture. Quantitative research methods were used. A questionnaire was developed and distributed to a random sample of senior managers of industrial companies in Jordan. Kendall and Mann–Whitney tests, RII, and EFA were used to analyze the acquired data. The results show that all discussed factors have an effect on risk management, and there is no difference between top and Lower Management’s opinions regarding the ranking of the importance of those factors on risk management. This study provides an original perspective on the concept of risk management and the factors that impact it. These findings have important implications for Jordanian industrial companies’ decision makers. Companies should apply the results to their strategies and policies to reduce risks.
... Therefore, one can assume that a good corporate risk management policy is an assertion of optimal income on a company's account and improvements to the company's performance. According to the Na Ranong & Phuenngam (Na Ranong & Phuenngam, 2009), ERM is seen as a top-down approach that constitutes identifying, assessing, and responding to strategic, operational, and financial risks in order to achieve four objectives: ...
This study extends the narrow focus of the ERM literature by examining
comprehensively the implementation of ERM components in the insurance industry of Oman.
The purpose of this research is to provide answers to the following questions: What percentage
of insurance companies have already adopted ERM? How do insurance companies specifically
implement the components of an ERM system mentioned above? Are some of these components
viewed as more important than others?
... These success factors were found to provide sound financial risk management strategies. The study by Na Ranong and Phuenngam (2009) confirmed that these critical success factors can be used to support the theory for effective risk management procedures in financial industries from the perspective of financial institutions in Thailand. This shows how critical success factors influence the risk management environment, as risk management theory has suggested. ...
As risk-taking is an essential part of the banking industry, banks must practise efficient risk management to ensure survival in uncertain financial climates. Banking operations are specifically affected by fluctuations in interest rates which cause financial imbalance; thus banks are now required to put in place an effective management structure that incorporates risk management efficiency measures that help mitigate the wide range of risks they face.
In this book, the authors have developed a new modelling approach to determine banks’ financial risk management by offering detailed insights into the integrated approach of dollar-offset ratio and Data Envelopment Analysis (DEA), based on derivatives usage. It further analyses the efficiency measurement under stochastic DEA approaches, namely (i) Bootstrap DEA (BDEA), (ii) Sensitivity Analysis and (iii) Chance-Constrained DEA (CCDEA). As demonstrated in the modelling exercise, this integrated approach can be applied to other cases that require risk management efficiency measurement strategies.
Additionally, this is the first book to comprehensively review the derivative markets of both the developed and developing countries in the Asia-Pacific region, by examining the differences of risk management efficiency of the banking institutions in these countries.
Based on this measurement approach, strategies are provided for banks to improve their strategic risk management practices, as well as to reduce the impacts from external risks, such as changes in interest rates and exchange rates. Furthermore, this book will help banks to keep abreast of recent developments in the field of efficiency studies in management accounting, specifically in relation to hedge accounting, used by banks in the Asia-Pacific region.
... These success factors were found to provide sound financial risk management strategies. The study by Na Ranong and Phuenngam (2009) confirmed that these critical success factors can be used to support the theory for effective risk management procedures in financial industries from the perspective of financial institutions in Thailand. This shows how critical success factors influence the risk management environment, as risk management theory has suggested. ...
... Educational background and competencies of the top management are among the critical factors in organizational because it will help the top management aware about risk management and also help the top management in planning a helpful strategy in the future. This theory has supported the study done previously by Ranong & Phuenngam (2009) in Thailand financial institution which is the researchers found that support and commitment from top management are among the crucial factors for effective risk management procedures. Also, support and commitment from top management are also among the crucial factors for risk management success in the oil and gas sector in Iran (Banasadegh et al., 2014). ...
Enterprise Risk Management (ERM) is believed as an effective risk management technique in managing risk within an organization and is fast becoming the best practice standard for an organization primarily for an entity that has high-risk exposure such as banking institutions. The purpose of this study is to develop the base knowledge and empirically test the relationship between organizational culture and ERM effectiveness. Also, an element of top management support also will be studied for determining the mediating effect of top management support on the relationship between organizational culture and ERM effectiveness. The data will be collected using a survey questionnaire and will be addressed to chief risk officers (CROs), chief internal auditors (CIAs) and chief financial officers (CFOs). This study tries to develop a conceptual framework by investigating the mediating effects of top management support on the relationship between organizational culture and ERM effectiveness among Malaysian public listed companies. Organizational culture expected to have direct effects and significantly influence ERM effectiveness. Also, top management support expected to mediates the relationship between organizational culture and ERM effectiveness.
... Several resources were used to consolidate and verify the list of factors applicable to this research. The critical success factors for project risk management, as described in the practice standard for project risk management [13], are the factors listed in Na Ranong and Phuenngam [14], in Gibson [15], in Hulett [7], and in Labuschagne et al. [16]. The factors analysed in this research are listed below: ...
Central to project management is risk management — and the need to develop better and more specific tools to manage risk. This is driven by the desire to reduce uncertainty and risk on projects. Quantitative tools such as Monte Carlo simulation are sometimes used to analyse risk, but it is not clear how widespread, accepted, or useful such tools are for practising project personnel. This research was undertaken to gain feedback from practising project and risk management personnel about the use of risk management tools. Special attention was given to the levels of use of quantitative risk management tools and the benefits gained from their use. A conceptual framework was created linking the factors that affect tool use to the actual tool use levels, and ultimately to project performance. Research questions reported on in this paper addressed levels of tool use, factors that affect tool usage, and the benefit aspect of tool use on project performance. Data were gathered via an on-line questionnaire that was statistically analysed, and a number of hypotheses were tested. The results of this study show that the levels of use of both qualitative and quantitative risk management tools are low compared with general project management tools. Correlations were found between a number of factors that affect tool use. © 2018, South African Institute of Industrial Engineering. All rights reserved.
... Hasanali [9] categorizes five critical success factors into: leadership; culture; structure, roles, responsibilities; information technology infrastructure; and measurement. Na Ranong and Phuenngam [10] determined seven CSFs for the financial industry namely: commitment and support from top management, communication, culture, information technology (IT), organization structure, training and trust. Studies of Agyakwa-Baah & Chileshe [11] identified 10 CSFs for the construction industry which are: management style, awareness of risk management process (RMP), cooperative culture, positive human dynamics, customer requirements, goals and strategic objective, impact of environment, usage of tools, teamwork and communication and availability of specialist in risk management. ...
... These success factors were found to provide sound financial risk management strategies. The study by Na Ranong and Phuenngam (2009) confirmed that these critical success factors can be used to support the theory for effective risk management procedures in financial industries from the perspective of financial institutions in Thailand. This shows how critical success factors influence the risk management environment, as risk management theory has suggested. ...
As risk-taking is an essential part of the banking industry, it is important for banks to practice efficient risk management to ensure survival in uncertain climates, such as the Asian Financial Crisis of 1997. Due to banking operations being specifically affected by fluctuations in interest rates, which cause financial imbalances, banks are now required to put in place an effective management structure that incorporates risk management efficiency measures that help mitigate the wide range of risks they face. Such efficient risk management measures are paramount in building robust and sound financial systems. This study provides a new approach for measuring risk management efficiency levels in banks by offering a more detailed insight into the data envelopment analysis (DEA) approach based on the usage of a financial risk instrument. Comparatively, the results of this study confirm the findings by Hahn (2008) indicating that Japanese banks are superior in terms of managerial efficiency when compared to European and US banks. Risk management efficiency measurement contributes to the strengthening of the efficiency levels of banking risk management and the achievement of sound risk management in banking operations, thus underscoring the impact of derivative usage on banking risk management efficiency. © Asian Academy of Management and Penerbit Universiti Sains Malaysia, 2017.
... They include, organizational culture, organizational structuring and design, communication and trust These factors were found to be significantly associated with the implementation of risk management practices [23; 24] identify top management support and organizational size as critical success factors for the implementation of risk management While [25] Identify senior management support, effective communication and organizational issues for risk management implementation [26] considered effective communication, Training and information technology system significantly related to implementation of risk management. [11] Examined the following factors as CSFs for risk management implementation in the financial institutions. They are as follows; communication, culture, commitment and support from top management, organizational structure, trust, training and information technology and concludes that there is significant relationship between these variables and implementation of risk management even though the level of significance differ. ...
Risk is one of human life certainties, and how the individual or organization deal with risk can have serious consequences on the achievement of their objectives. Risk management is a catalyst for promotion of good governance, enhancing effective internal control and organizational performance. The study focuses on antecedents of the level of risk management practices in Nigeria particularly the adoption and implementation of risk management practices in the Nigerian local government. A brief historical development of risk management and critical evaluation of the structure and problems of governance in Nigerian public sector will be discussed. The need for comprehensive risk management system to enhance good governance in the Nigeria public sector is paramount and requires a comprehensive system that will identify, assess, analyze, control and monitor all risks that will impede the achievement of the goals and objectives of local government. A framework for the implementation of risk management in the local government will be proposed.
... Other than that, findings from different paper found a set of seven critical success factors which can be used as a guideline on how to increase the effectiveness of risk management procedures. These factors are commitment and support from top management, communication, culture, information technology, organization structure, training and trust (Ranong & Phuenngam, 2009). ...
... Hypotheses; HE 1 : Business location has a positive effect on the decision to undertake risk management. Ranong & Phuenngam (2009) ...
This research seeks to study the factors that enhance or preclude owners of SMEs in Ghana in making risk management decisions. The study was conducted with managers of SMEs in four regions in Ghana. The researchers adopted a quantitative approach and employed STATA 10 and SPSS version 20 in the analysis. Stratified and simple random sampling techniques were used to select the sample units. The probit model was used in the analysis of data. A total of 447 SMEs were sampled for the study, with at least 111 from each of the selected regions. The probit results show that the demographic factors indicate a positive influence on the likelihood that managers will take risk management decisions. All of the business related demographic factors are significant at various levels and positive, except for risk-loving. The economically related factors, such as the estimated amount at risk, the estimated cost of risk management and the estimated total monthly income after tax all have a positive influence on risk management decision making. However, government and tax policies are perceived to negatively influence risk management decisions by managers. We recommend that institutions working closely with SMEs acquire the expertise to train the managers of SMEs on risk management practices. © 2014 Wyzsza Szkola Finansow i Zarzadzania w Warszawie. All rights reserved.
... Moreover, it demands project risk management to anticipate potential negative conditions, problems, and realities which incorporates formal methods for identifying, monitoring, and managing risks and ensures that sufficient resources are available to conduct related activities (Galorath, 2006). According to Ranong and Phuenngam (2009), effective project risk management depends on top management support, organizational structure and culture, communications, and training as the key factors to success. It is also required to define and monitor the right project performance measures as part of project management system. ...
This paper suggests a novel success framework for customer relationship management (CRM) based on a conceptual implementation model to identify associated critical factors and their contribution to overall success/failure. Fuzzy analytic network process (FANP) is applied to identify the relative importance of each factor in successful implementation of each stage and the CRM initiative as a unified process. The results illustrate that CRM goals, change management, customer knowledge management, and top management support are the most critical factors for successful implementation of CRM projects within Iranian business contexts. The proposed success framework provides valuable insight into the CRM implementation process and its critical success factors (CSFs). It can be applied as a practical assessment tool that provides a pre-evaluation of the overall success of the CRM implementation project and identifies areas of weakness that negatively affect successful implementation of each stage of CRM initiative.
... This means that investment in information technology in risk management improves financial performance of a firm. This finding support other studies in the same area such as; Hoyt and liebenberg (2008), Ranong and Phuenngam (2009) and Kumsuprom, Corbit, Pittayachawan and Mingmalaraks (2010). In addition information technology on ERM support the COBIT principle model that provides good practices across a domain and process framework that contribute significantly to the successful information technology risk management.Firms should therefore invest on technology on enterprise risk management as it enables firms to enhance efficiency and accuracy. ...
يهدف البحث الى اختبار مدى تأثير الادارة الفاعلة كمتغير مستقل في تحقيق الاداء المتميز كمتغير تابع بتوسيط الابداع الوظيفي في معمل السجاد العراقي , اذ انطلق البحث وفق الفرضية الرئيسة (يوجد تأثير غير مباشر للإدارة الفاعلة في تحقيق الاداء المتميز بتوسيط الابداع الوظيفي في المنظمة المبحوثة اجمالاً وعلى مستوى الابعاد ) , اذ اعتمد البحث المنهج الاستطلاعي التحليلي لإنجاز البحث , واستعملت الاستبانة كأداة رئيسة لجمع البيانات من عينة قوامها (100) فردأُ من مدير معمل ومدراء الوحدات والعاملين بطريقة عشوائية , فضلاً عن ذلك اجراء المقابلات الشخصية طيلة فترة التواجد في المعمل , وبرزت نتائج البحث بضرورة المحافظة على مستوى الادارة الفاعلة مع دخول دماء جديدة ومؤثر لها القدرة في اتخاذ القرار واستحداث اساليب جديدة وشبكات للتواصل اكثر فاعلية مابين المستويات الادارية من جهة وزيادة الثقة ومنح دور القيادة للعاملين لخلق نظرة متكاملة حول الاداء وضمان الاستمرار بالتحسين المستمر في الانتاج من جهة اخرى , كما ينبغي على ادارة المعمل منح العاملين المبدعين حوافز مادية ومالية بغية تشجيع الاخرين على المنافسة في خلق افكار جديدة , مع حث الجميع بأهمية الابداع في العمل باعتباره المحرك الاساسي في تميز ادائهم , مع حل المشكلات التي تواجههم اثناء العمل بروح الفريق الواحد بغية المحافظة على جودة الانتاج والمنافسة في بيئة العمل .
The research aims to test the extent of the effect of effective management as an independent variable in achieving outstanding performance as a dependent variable by mediating job creativity in the Iraqi carpet factory. The research was launched according to the main hypothesis).There is an indirect effect of effective management in achieving outstanding performance by mediating functional creativity in the organization studied as a whole and at the dimensional level), The research adopted the analytical exploratory method to complete the research.The questionnaire was used as the main tool in collecting data from a sample of (100) individuals, including the laboratory director, unit managers, and workers, in a random manner. In addition, conducting personal interviews throughout the period of presence in the laboratory.The results of the research highlighted the need to maintain the level of effective management with the entry of new and influential blood with the ability to make decisions and the development of new methods and networks for more effective communication between administrative levels on the one hand, and to increase confidence and give a leadership role to workers to create an integrated view of performance and ensure the continuation of continuous improvement in production from On the other hand , The laboratory management should also give creative workers material and financial incentives in order to encourage others to compete in creating new ideas. While urging everyone to emphasize the importance of creativity at work as it is the main driver in their excellent performance,With solving the problems they face while working in a team spirit in order to maintain the quality of production and competition in the work environment.
Construction projects inherently involve risks. If proper risk management practices are not employed, the likelihood of cost overruns can reach more than 80%. Risk monitoring and control are essential processes in risk management; however, their implementation is inadequate in construction projects. This research analyzed the main barriers and drivers for implementing risk monitoring and control in construction projects. A questionnaire survey was conducted using a Likert scale to measure respondents' perceptions. Data were collected from 71 respondents: top management, project managers, project risk managers, and risk officers. This study employs descriptive analysis and factor analysis to achieve the objectives. The results indicate that the 19 identified barriers to risk monitoring and control were categorized into 4 main factors: lack of practice, lack of risk awareness, lack of incentives and having difficulty finding methods, and misperceptions about risk monitoring and control. Meanwhile, the 21 drivers were categorized into 5 main factors: management support, tools and information technology, organizational structure and communication, external environment, assigning responsibility, and contingency reserve.
This study aimed to analyze the impact of critical success factors of strategic information system on the strengthening human resources management strategies in the Social Security Corporation. The study population was made up of 120 members of the directors and chiefs of sections of the Social Security Corporation. Structural equation modeling (SEM) was conducted to test hypotheses. The study found a statistically significant impact of the critical factors of the strategic information system on the human resources management strategies of the Social Security Corporation. The study recommended that attention should be given to strengthening top management support for its important role in strengthening human resources management strategies and the strategic information system.
This chapter examined the critical success factors, challenges, and opportunities associated with securing finance for real estate project development in the developed and emerging economies of Germany, the UK, and the USA as the former, China, Nigeria, and South Africa as the latter. Based on the survey results from managers engaged directly in real estate financing activities, this chapter developed a framework for an environmental scan for securing finance for real estate project development. The research participants were a total of 116 managers made up of 35 interviews and 81 responses to the questionnaire surveys.
In the light of the globalization Which surrounds the business environment and whose impact has been reflected on industrial economic units the whole world has become a single market that affects its variables on all units and is affected by the economic contribution of each economic unit as much as its share. The problem of this research is that the use of Pareto analysis enables industrial economic units to diagnose the risks surrounding them , so the main objective of the research was to classify risks into both internal and external types and identify any risks that require more attention. The research was based on the hypothesis that Pareto analysis used, risks can be identified and addressed before they occur. The most important conclusions were the absence of the elements of innovation and design, which are the basis of the composition of the value and gain customer satisfaction as the shape of the packaging 2-liter light remained the same since the production in this manner. The research concluded by focusing on quality and using one of its tools to solve the problems that result from deviation in quality and thus avoid the loss that the company is subjected to as a result of this deviation. شناوة يز عز وسام م.د. الجامعة العلم مدينة كلية-المحاسبة قسم حسين محمود أحمد م.د. الجامعة دجلة كلية-و المالية العلوم قسم المصرفية
Risk management often becomes a significant concern among the construction professionals especially due to the complex nature of the industry. Though it is a popular subject in project management discipline, it was observed that authentic application of the principles of risk management at times is arguable in practice. As a Project Manager who is a key role player in a project, it is vital to have a solid knowledge on risk management and its related arena. Evidence was found of limited risk management knowledge among construction professionals. Therefore, a study was conducted to find the status of risk management knowledge among the construction Project Managers in Sri Lanka. A mixed method approach was followed by a comprehensive literature review on elements of body of knowledge of risk management and later a questionnaire survey to contextualise the status of the knowledge gap of Project Managers in real. According to the findings of the study, it could be concluded that Sri Lankan Project Managers are not fully confident on their risk management knowledge. It was primarily likely to be due to the limited learning in the subject area when pursuing higher studies. The study also identifies the options to device appropriate strategies to improve risk management knowledge among the Construction Project Managers in Sri Lanka.
This study was aimed to measure the impact of enterprise risk management practices on firm performance following the moderation of staff competence. The present study proposed five hypotheses, three direct and two moderating. For measuring hypotheses and objectives, the current research targeted bank officers in the Kingdom of Bahrain's banking sector. A total final sample of 349 was used in primary analyses selected through simple random sampling. Current research shows significant positive effects of risk culture and risk knowledge sharing on the firm`s (financial and non-financial) performance of banks in the Kingdom of Bahrain. Similarly, the first moderation strengthens the relationship between risk knowledge sharing and firm performance through staff competence. In addition, the second moderation hypothesis does not strengthen the relationship between risk culture and firm performance with the moderating effect of staff competence. The current research findings are supported under the resource-based view with several theoretical and practical implications for researchers and industry practitioners.
In the light of the globalization Which surrounds the business environment and whose impact has been reflected on industrial economic units the whole world has become a single market that affects its variables on all units and is affected by the economic contribution of each economic unit as much as its share. The problem of this research is that the use of Pareto analysis enables industrial economic units to diagnose the risks surrounding them , so the main objective of the research was to classify risks into both internal and external types and identify any risks that require more attention. The research was based on the hypothesis that Pareto analysis used, risks can be identified and addressed before they occur. The most important conclusions were the absence of the elements of innovation and design, which are the basis of the composition of the value and gain customer satisfaction as the shape of the packaging 2-liter light remained the same since the production in this manner. The research concluded by focusing on quality and using one of its tools to solve the problems that result from deviation in quality and thus avoid the loss that the company is subjected to as a result of this deviation. شناوة يز عز وسام م.د. الجامعة العلم مدينة كلية-المحاسبة قسم حسين محمود أحمد م.د. الجامعة دجلة كلية-و المالية العلوم قسم المصرفية
This paper suggests a novel success framework for customer relationship management (CRM) based on a conceptual implementation model to identify associated critical factors and their contribution to overall success/failure. Fuzzy analytic network process (FANP) is applied to identify the relative importance of each factor in successful implementation of each stage and the CRM initiative as a unified process. The results illustrate that CRM goals, change management, customer knowledge management, and top management support are the most critical factors for successful implementation of CRM projects within Iranian business contexts. The proposed success framework provides valuable insight into the CRM implementation process and its critical success factors (CSFs). It can be applied as a practical assessment tool that provides a pre-evaluation of the overall success of the CRM implementation project and identifies areas of weakness that negatively affect successful implementation of each stage of CRM initiative.
Communication management is viewed as an imperative factor associated with performance improvement in construction projects. In Eswatini, it is established that projects experience poor project delivery associated with poor communication management practices. This study seeks to elucidate communication management practices informed by local culture and relate it to project outcome. A questionnaire survey of practitioners registered with Eswatini construction industry council was adopted for the study. Data was collected from 66 respondents. Principal axis factoring established nine practices namely; information technology, communication technology, communication skills and competence, communication management plan, teamwork, clear channels within organisation’s structure, project brief requirement management, project brief risk requirement management and context of environment as being key factors to project positive outcome. Spearman’s rho established that a relationship exists between project outcome and three practices namely; information technology, communication management plan and clear channels within organisation’s structure. The findings present key empirical evidence of the communication management practices that relate to project outcome in Eswatini. The study contributes on communication management practices in Eswatini and its relation on project outcome. Limitation of the study conclude that results and analysis cannot be generalised. However, the findings from the research provides opportunities for extensive further research recommendations to assess, refine and understand the effect of the variable’s communication management practice to project outcome.
For developing smart cities, it is necessary to integrate all components of a city as a system of systems. This is facilitated by urban computing as a technology to address the complexity of providing adequate services to citizens through various city sectors/systems. Since business processes across city sectors/systems should be aligned with the objectives of urban computing, Business Process Change (BPC) is also a significant prerequisite of city systems integration for Smart City Development (SCD). However, there is limited research on understanding of BPC and its challenges in SCD, while in the private sector, the BPC best practices for Enterprise Systems Integration (ESI) have already been recognised and implemented. By considering city as an enterprise, this research aims at providing an understanding of similarities and differences between BPC challenges in the two contexts: SCD and ESI. This study collects data through literature analyses, interviews, and document analyses and suggests that many BPC challenges in SCD have an equivalent from the ESI context. In addition, the findings provide new insights through some challenges that are only relevant to the SCD context, so-called unsolved challenges. Consequently, the study developed a comparison framework, which indicates that the learnings from ESI could be utilised for the SCD context, in order to address BPC challenges. This will assist city authorities in designing their SCD roadmap, prioritising BPC challenges based on the efforts employed for ESI, and thinking about addressing unsolved challenges; as well as smart city solution providers to develop solutions for changing city processes.
The purpose of this study was to investigate the effects of firm size on enterprise risk management for the listed firms in Kenya. Effectiveness of enterprise risk management is measured by financial performance of the listed firms. A descriptive research design was used. Theoretically, ERM adds value to an organization, however there is disagreement among scholars on whether ERM add value to a firm that adopt ERM. This study investigated the effects of firm's size on ERM measured in terms of financial performance of the listed firms in Kenya. A descriptive research design was used and the study population was the managers heading ERM departments in the listed firms. A survey sheet was used to collect secondary data from annual financial statements of each of the listed firms; primary data was collected using questionnaires. Data collected was analyzed using descriptive statistics and regression analysis models. The relationship between independent variable and dependent variable was analyzed using linear regression models. The hypothesis was tested using F-test at 5% level of confidence. The results were presented using pie charts, tables and graphs. The finding from the study was compared with the empirical literature as well as the theoretical literature.
The critical success factors (CSF) method has attracted considerable attention as a means of supporting both MIS planning and requirements analysis. Using insights gained from two case studies, the authors assess the strengths and weaknesses of this methodology. They find that the CSF method is particularly effective in supporting planning processes, in communicating the role of information technologies to senior management, and in promoting structured analysis processes.
With the use of information technology (IT), organizations radically redesign their business processes and improve their business profitability and productivity. Previous information systems (IS) research has investigated whether or not IT improves business profitability and productivity. However, most of the previous studies failed to consider any contextual or moderating factors that might affect firm performance and productivity. Because it is intangible and intermediate benefits, e.g. better coordination, quality improvement, increased variety, and innovation, complicate the justification process for IT investments, this paper empirically examines the direct relationship between IT and coordination. The results of this study clearly show that IT spending is strongly associated with a decline in coordination costs. From the results, it can be inferred that IT enhances coordination of economic activities by reducing coordination costs, and thereby can improve firm performance and productivity.
Describes the elements of a successful employee training programme. Explains the distinction between training and education, along with a discussion of why “soft skills” training initiatives are less effective than skills-based approaches. Discusses the critical role of the training manager in implementing a training programme, as well as important considerations when developing a strategic training plan. Finally, describes several key factors which determine how employee training programmes can best support company profitability.
Organizational structure significantly influences firm performance. A recent survey of logistics professionals revealed that centralized structures accommodated logistics system integration better than decentralized structures. Also, centralized firms spent a lower percentage of net sales on logistics costs and information system support costs than decentralized firms. On the other hand, no signficiant differences were identified between centralized and decentralized firms in terms of information system performance. Information system support needs were addressed comparably regardless of organizational structuring. However, while centralized and decentralized firms exhibited similar capabilities in terms of effectiveness (reaching goals), centralized firms appeared to be more efficient (resource utilization).
Purpose
The purpose of the paper is to determine the impact of cultural values on the success of TQM implementation in Isfahan University Hospitals (IUHs), Iran, 2004.
Design/methodology/approach
In this paper survey questionnaires were used to elicit responses from hospital managers and employees. Data collected included the characteristics of organizational culture in IUHs and the degree of TQM success and its implementation problems in these hospitals.
Findings
The paper finds that TQM success in IUHs was medium. Implementation of TQM was very low, low, medium and highly successful respectively in 16.7, 16.7, 58.3 and 8.3 percent of hospitals. TQM had the most effect on process management, focus on customers and leadership and management and less effect on focus on suppliers, performance results, strategic planning and focus on material resources. Human resource problems, performance appraisal and strategic problems were the most important obstacles to TQM success respectively. A total of 75 and 25 percent of hospitals had mechanistic and organic structure respectively. In total 41.6 percent of hospitals had weak organizational culture versus 58.4 percent medium culture. The success of TQM in hospitals with organic organizational structure and medium organizational culture was higher than mechanistic and bureaucratic hospitals with weak organizational culture ( p <0.05).
Originality/value
The paper shows that TQM requires a quality‐oriented organizational culture supported by senior management commitment and involvement, organizational learning and entrepreneurship, team working and collaboration, risk taking, open communication, continuous improvement, customers focus (both internal and external), partnership with suppliers, and monitoring and evaluation of quality. By replicating this study in different countries and contexts the results could be very helpful for developing a model of TQM that can be implemented successfully in a cross‐cultural context.
Suggests that there is an optimal level of trust in many team situations. Too much trust can impact negatively on performance. Uses empirical research involving 142 members of 28 teams to identify factors that relate to this optimal level of trust, and those factors that demonstrate undesirable behaviors. In order to maximize team performance, teams must exhibit critical enquiry and constructive criticism in addition to a supportive understanding.
Purpose
Top management support is considered to be an area that has high impact on project success. However, previous studies have also stated that effective top management support practices may vary across industries. This paper focuses on top management support for projects executed in the software sector. The objective of this study is to identify those top management support processes that have the greatest impact on software development project success and to compare these critical processes with the actual type of support provided by organisations.
Design/methodology/approach
About 17 top management support processes have been identified from the literature. Their effectiveness has been calculated according to their relative impact on project success. Data has been collected from 213 software development project managers and their supervisors in Japan, Israel and New Zealand. For each country, the impact of top management support processes on project success has been analysed to identify critical processes. Then, the actual level of use of both critical and non critical top management support processes by senior managers has been compared.
Findings
Different critical top management support processes have been identified in each country. However, six processes have been found to have higher contribution to project success than others. These processes are described and discussed in the paper. It has also been found that in all three countries top managers do not invest more effort in critical processes, than in non critical ones. Instead, in all countries, executives choose to perform easy‐to‐do processes. Critical top management support processes, which have higher impact on project success, often do not receive an appropriate level of attention from senior managers in the software industry.
Practical implications
Senior managers in the software industry may focus on critical processes, rather than paying lip service to less important ones. Specific practices designed to support these critical processes are also presented in the paper.
Originality/value
The paper suggests a detailed list of critical top management support processes, which significantly improve project success in different cultures. The paper also discusses this list in comparison with what is currently done by executives in the software industry and concludes with specific recommendations to managers in the software industry.
This study addressed the nature and functioning of relationships of interpersonal trust among managers and professionals in organizations, the factors influencing trust's development, and the implications of trust for behavior and performance. Theoretical foundations were drawn from the sociological literature on trust and the social-psychological literature on trust in close relationships. An initial test of the proposed theoretical framework was conducted in a field setting with 194 managers and professionals.
A great deal of literature has pointed to the importance of trust as a facilitator of positive relationships among project stakeholders. Trust is argued to enhance a variety of intra-organizational relationships, including project team dynamics, top management support, and coordination across functional departments. Likewise, trust is argued to improve the inter-organizational relationships among principal actors in project development, such as contractors, owners, and suppliers. This paper reports on the results of an empirical study that investigated the impact of trust between project owners and contractors in a number of large construction projects in Canada. We operationalized trust along the Hartman [Hartman FT. The role of trust in project management. In: Slevin DP, Cleland DI, Pinto JK, editors. The frontiers of project management research. Newtown Square, PA: Project Management Institute; 2002, p. 225–35] dimensions as incorporating both competence and integrity and compared the perspectives of project contractors and owners. Using regression and path analysis, we analyzed the differential effects of competence and integrity trust on enhanced owner/contractor relationships and project success. Our findings indicate that trust has different meanings for contractors and owners, as its impact on satisfaction with the relationship and positive project outcomes varies depending upon which group is surveyed.
The financial crisis of East Asia in 1997 was largely unanticipated and was characterized by sharp falls in asset prices and currency values in several countries simultaneously. Many empirical models have been developed to predict the occurrence of such crisis. However, the out-of-sample performance of these models is disappointing. Most theoretical explanations of the crisis emphasize the role of banking sector and revolve around models of moral hazard or self-fulfilling runs on liquidity. Empirical tests of the models are, however, rare. Much work remains to be done to explain the contagion, and the effects of equity capital flows.
The success of any organisation inevitably depends very largely on the staff it employs. The article sets out requirements for effective training – as assessment of needs, clear training policy, support of the management, co‐operation of the managers and adequate finance and resources. The results of a study of \ill\ organisations are reported, from which four levels of training were identified ‐output, task, performance and strategic. For most organisations, training was a low \ill\ low status activity, not an integral part of the business plan.
Risk management is more important in the financial sector than in other parts of the economy. But it is difficult. The basis of banking and similar financial institutions is taking risk in conditions of uncertainty. Describes how the Turnbull report, for which the author was project director, created a new underlying approach to risk. Provides a guide to the way in which the various Turnbull ideas have become the bedrock of risk management and suggests how they can be developed.
CEOs face many challenges. They must focus and motivate their organizations to capitalize on emerging opportunities. They must continually invest scarce resources in the pursuit of promising – though uncertain – investments and business activities. They must manage the business in the face of constantly changing circumstances. And as they do all of these things, they must simultaneously be in a position to confidently assure investors, directors and other stakeholders that their organizations manage risk in today’s demanding global marketplace.
It has been recognised that there is importance of trust within organisations. There is also a recognised theme that trust must move beyond rational or calculative trust to various forms of social trust. This paper makes clear the potential importance of social trust, and its value to emerging organisations. In the new era of faster, looser, more rapidly changing connections between people and groups, trust based on inferences about the motives, character and intentions of others is becoming more central to the ability of organisations to manage their dynamics efficiently and effectively and ensure their growth and survival.
It is very kind of you to have invited me to give the 8th Aslib Annual Lecture—although it is a wonderment to me on what grounds such a choice was made. I hope this audience does not expect me to inform them of the inner story of a recent public debate—or if you do, that you will not be disappointed in the alternative topic I have chosen for this address.
This paper presents various approaches to studying cultures of different countries. The starting point is Hofstede's dimensions of cultural values as well as Hall's approach to high- and low-context cultures. After that the interaction between culture and organizational behavior is discussed. A special attention to the impact of culture on motivation of employees, communication, conflict resolution and organizational changes is given. This article concludes with the presentation of some methods that can be applied to the training of managers on various cultures.
Purpose
– The purpose of this paper is to investigate the impact of such contingency factors as top management support, business vision, and external expertise, on the one hand, and enterprise resource planning (ERP) system success, on the other.
Design/methodology/approach
– A conceptual model was developed and relevant hypotheses formulated. Surveys were conducted in two Northern European countries and a structural equation modeling technique used to analyze the data.
Findings
– It was found that the three contingency factors positively influence ERP system success. More importantly, the relative importance of quality external expertise over the other two factors for ERP initiatives was underscored
Originality/value
– It is argued that ERP systems are different from other information technology implementations; as such, there is a need to provide insights as to how the aforementioned factors play out in the context of ERP system success evaluations for adopting organizations. As was predicted, the results showed that the three contingency factors positively influence ERP system success. More importantly, the relative importance of quality external expertise over the other two factors for ERP initiatives was underscored. The implications of the findings for both practitioners and researchers are discussed.
Although management is often viewed as distinct from, and sometimes inferior to, leadership, the two share a number of core competencies. Communication is central to the main four management competencies outlined by Warren Bennis: the management of attention, meaning, trust and self. To be truly effective, both leaders and managers must develop their self-awareness, become role models for communication in the organisation, and learn to encourage and manage constructive dissent. An important part of the communication professional’s role is to support the organisation’s leaders and managers in developing their communication competence.
In this paper risk identification is investigated as a basic stage in risk management. The risk identification phase as the first stage in the risk management process is presented and its leading role for effective risk management is proved. The basic terms that are necessary for building of the frame approach for risk identification are defined: sources of risk-hazard, factor-peril-resources exposed to risk. A classification of risk sources – physical, social, political, operational, economic, legal and cognitive environment – is proposed. It allows covering all types of risk facing the organisation. A grouping of the resources exposed to risk such as physical, human, and financial resources is introduced. It is based on a practical consideration of the risk situations in the organisations.
Critical success factors (CSFs) are the hottest management buzz words. But most managers are vague about exactly what they are, how they work, and the problems inherent in using them. This article defines critical success factors (also known as “key success factors”) and describes how one insurance company has used them successfully to fine tune its business planning.
Describes the training model employed to train trainers for the UK-based ATLS (Advanced Trauma Life Support) programme. A questionnaire evaluation of the course reveals the effectiveness of the training model when compared to other training provision in postgraduate medical education. The course is seen to be very effective in raising the confidence of instructors who have little previous training in instructional methods. Identifies and discusses the successful characteristics of the course which include a high tutor:student ratio, extensive use of interactive learning strategies, continuous assessment, a focus on problem-based learning and the use of self and peer group critiquing strategies.
Scholars in various disciplines have considered the causes, nature, and effects of trust. Prior approaches to studying trust are considered, including characteristics of the trustor, the trustee, and the role of risk. A definition of trust and a model of its antecedents and outcomes are presented, which integrate research from multiple disciplines and differentiate trust from similar constructs. Several research propositions based on the model are presented.
This paper looks at organizations at work to determine various effects on productivity. Six research-based organizations were studied against a backdrop of dynamic impacts. After the application of several tests, the conclusion indicates that the optimal approach uses a variety of structures and elements to ensure a fluid and flexible organization able to deal with shifts in direction or impacts.
A considerable amount of research has examined trust since our 1995 publication. We revisit some of the critical issues that we addressed and provide clarifications and extensions of the topics of levels of analysis, time, control systems, reciprocity, and measurement. We also recognize recent research in new areas of trust, such as affect, emotion, violation and repair, distrust, international and cross-cultural issues, and context-specific models, and we identify promising avenues for future research.
A general formula (α) of which a special case is the Kuder-Richardson coefficient of equivalence is shown to be the mean of
all split-half coefficients resulting from different splittings of a test. α is therefore an estimate of the correlation between
two random samples of items from a universe of items like those in the test. α is found to be an appropriate index of equivalence
and, except for very short tests, of the first-factor concentration in the test. Tests divisible into distinct subtests should
be so divided before using the formula. The index
[`(r)]ij\bar r_{ij}
, derived from α, is shown to be an index of inter-item homogeneity. Comparison is made to the Guttman and Loevinger approaches.
Parallel split coefficients are shown to be unnecessary for tests of common types. In designing tests, maximum interpretability
of scores is obtained by increasing the first-factor concentration in any separately-scored subtest and avoiding substantial
group-factor clusters within a subtest. Scalability is not a requisite.
This research provides evidence that top management support is the most important critical success factor for project success and is not simply one of many factors. The finding is justified in the context of the project management literature and the IS factor research on project success. There are implications for practice because it appears that the conventional technical and project management advice has less impact on project success than previously thought. Boards and top managers may have to personally accept that they have more influence on whether a project succeeds or fails.
Human civilizations are threatened by natural hazards and by risks connected to technological progress in civil, chemical and nuclear engineering. The notion of acceptable risk forms the basis for the design of many engineering structures ranging from simple river levees to nuclear reactors, that contribute to human welfare. A frame work is developed to judge the acceptability of risks from an individual and a societal point of view.
Purpose
To date, critical success factors (CSFs) for implementing knowledge management (KM) in small and medium enterprises (SMEs) have not been systematically investigated. Existing studies have derived their CSFs from large companies' perspectives and have not considered the needs of smaller businesses. This paper is aimed to bridge this gap.
Design/methodology/approach
Existing studies on CSFs were reviewed and their limitations were identified. By integrating insights drawn from these studies as well as adding some new factors, the author proposed a set of 11 CSFs which is believed to be more suitable for SMEs. The importance of the proposed CSFs was theoretically discussed and justified. In addition, an empirical assessment was conducted to evaluate the extent of success of this proposition.
Findings
The overall results from the empirical assessment were positive, thus reflecting the appropriateness of the proposed CSFs.
Practical implications
The set of CSFs can act as a list of items for SMEs to address when adopting KM. This helps to ensure that the essential issues and factors are covered during implementation. For academics, it provides a common language for them to discuss and study the factors crucial for the success of KM in SMEs.
Originality/value
This study is probably the first to provide an integrative perspective of CSFs for implementing KM in the SME sector. It gives valuable information, which hopefully will help this business sector to accomplish KM.
This paper examines the problem of risk mitigation in virtual organizations (VO's). We begin by discussing risk propensity in virtual organizations, and draw on a variety of research to suggest processes important in obtaining high levels of reliable performance in VO's. From this research we identify four processes we think are important: organizational structuring and design, communication, culture, and trust. Based on existing research done in conventional and high reliability organizations, we suggest how these processes may enhance reliability in VO's. We discuss how thoughtful management of these attributes can mitigate risk, and conclude with a theoretical and research agenda for future work.
The first version of the Nolan Stages Theory appeared in 1973. It explained the dynamics of the increasingly vital production factor called IT. This theory is probably the most well-known and most widespread framework of the development of information technology in organisations. It provides many insights in the ways in which IT has evolved and continues to evolve. Moreover, it offers both senior (business) management and IT management the possibility of directing this complex phenomenon, without immediately going into technical details. Since 1973, a number of associated articles have been published by Richard L. Nolan and a number of co-authors. The theory has continuously been adapted to the current IT environment and has been applied by a huge number of large companies throughout the world. Proceeds with the development of the Stages Theory in order to be able to deal with the business and IT issues of the next five to ten years.
Suggests that a number of difficulties are experienced by organizations using conventional risk analysis and management. “Conventional” refers to those methodologies which are based on the traditional asset/threat/vulnerability model. Identifies a need for an approach that is more suitable for smaller organizations, as well as organizations requiring a quicker, more simplified and less resource-intensive approach. In light of this requirement, proposes an alternative approach to effective information technology (IT) risk analysis and management. This approach has a business-oriented focus from an IT perspective.
Purpose
The purpose of this research is to examine the degree to which the UAE banks use risk management practices and techniques in dealing with different types of risk. The secondary objective is to compare risk management practices between the two sets of banks.
Design/methodology/approach
The authors developed a modified questionnaire, divided into two parts. The first part covers six aspects: understanding risk and risk management; risk identification; risk assessment and analysis; risk monitoring; risk management practices; and credit risk analysis. This part includes 43 closed‐ended questions based on an interval scale. The second part consists of two closed‐ended questions based on an ordinal scale dealing with two topics: methods of risk identification, and risks facing the sample banks.
Findings
This study found that the three most important types of risk facing the UAE commercial banks are foreign exchange risk, followed by credit risk, then operating risk. It also found that the UAE banks are somewhat efficient in managing risk, and risk identification and risk assessment and analysis are the most influencing variables in risk management practices. Finally, the results indicate that there is a significant difference between the UAE national and foreign banks in the practice of risk assessment and analysis, and in risk monitoring and controlling.
Originality/value
The article will be of value to those interested in the banking industry.
Outlines the essential steps in establishing risk management as an effective process in any organization and relates to management claims, complaints and adverse incidents. Discusses the way to elicit and use information from patients and staff. Emphasizes the need to learn from all those involved in delivery and receipt of care.
Identification of information needs of top management is discussed in this article by comparing four methods now in use with a new approach, "identification of critical success factors," developed at the Sloan School of Management. The author argues that the CSF method, implemented through a series of two to three interview sessions, helps top management define its own current information needs. Critical success factors are those performance factors which must receive the on-going attention of management if the company is to remain competitive. While not intended for strategic planning purposes, the identification of critical success factors can help top management by: (1) determining where management attention should be directed; (2) developing measures for critical success factors; and (3) determining the amount of information required and thus limiting gathering unnecessary data. The author concludes that the CSF method is both effective and efficient and should be seriously considered by top management as an important tool in assessing data needs.
The financial crisis of East Asia in 1997 was largely unanticipated and was characterized by sharp falls in asset prices and currency values in several countries simultaneously. Many empirical models have been developed to predict the occurrence of such crisis. However, the out of sample performance of these models is disappointing. Most theoretical explanations of the crisis emphasize the role of banking sector and revolve around models of moral hazard or self-fulfilling runs on liquidity. Empirical tests of the models are, however, rare. Much work remains to be done to explain the contagion, and the effects of equity capital flows. JEL classification: F30, G15, G21, G31 Keywords: Financial Crisis; Real Exchange Rate; Moral Hazard; Run; Liquidity; Capital Flows ________________________________________________________________________ 1. Introduction The financial crisis that engulfed much of East Asia in 1997 and thereafter appeared to be largely over by the dawn of the new millen...
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