Enterprise risk management as a business enabler
- Authors: Du Plessis, Julian Lesley Nebreska
- Date: 2012-06-05
- Subjects: Enterprise risk management , Risk management , First National Bank of Southern Africa , Financial risk management
- Type: Thesis
- Identifier: uj:2424 , http://hdl.handle.net/10210/4884
- Description: M.Phil. , The premise of this research study was to study the phenomenon of Enterprise Risk Management (ERM) in order to understand the processes and practices of risk management within First National Bank (FNB). Risk management became a favourite topic for discussion in the aftermath of the Global Financial Crisis (GFC). Some analysts, chief financial officers and observers have noted that risk management is to blame for the economic recession and myriad of bank failures that ensue. However, the intention of this research study was not to analyse the GFC or to devote itself entirely to defend risk management and risk managers.
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The construction and evaluation of an enterprise risk management instrument for state-owned enterprises
- Authors: Vergotine, Hilton Wilhelm
- Date: 2012-10-25
- Subjects: Risk management , Enterprise risk management , State-owned enterprises , Government business enterprises - Management
- Type: Thesis
- Identifier: uj:10447 , http://hdl.handle.net/10210/7912
- Description: D.Phil. , The purpose of the study is to construct and evaluate a measuring instrument that could determine the business impact of enterprise risk management (ERM) processes on State-Owned Enterprises (SOEs) in South Africa. In respect of ERM, various authors point out that there is little empirical research on the topic and almost no research regarding the evaluation of its effectiveness and value contribution to organisations. In addition, the current measurement tools for assessing the management of risk maturity are based on subjective assessments or comprised of checklists of activities that assess ERM components based on individual opinions. It was against this setting that the literature review focuses on the components and the broader organisational improvement strategies within which ERM is practised. This entails outlining corporate governance and discussing its processes and practices. In particular, the discussion focuses on historical and current practices, corporate scandals and the lessons learned from them, internationally accepted codes, local corporate governance codes, and corporate governance codes applicable to SOEs. The discussion concerning the management of risk concentrates on its fundamental principles, the link with corporate governance, and the broader discipline and practice of ERM. The significance of ERM is further elaborated on by focusing on its approach, the key local and international ERM standards and associated principles, ERM evaluation practices, and current shortcomings identified in the management of risks. In order to meet the empirical objectives of the study, a pragmatic research paradigm, using a mixed methods approach, was chosen. This selection was considered appropriate as the pragmatic paradigm applies all research approaches in understanding a problem. To this extent, a mixed methods research approach was adopted, comprised of the qualitative approaches to sampling, interviews, observations, the review of organisational documents, the Delphi method, construction of the questionnaire items, and development of the instrument. The point of interface between the research approaches occurred at the level of sampling and the analysis of the results collated from the validation of the instrument by applying descriptive and inferential statistical methods.
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Enterprise risk management implementation : perceptions of risk practitioners in the South African mining industry
- Authors: Maier, Justin
- Date: 2013-12-09
- Subjects: Enterprise risk management , Risk management
- Type: Thesis
- Identifier: uj:7854 , http://hdl.handle.net/10210/8748
- Description: M.Comm. (Financial Economics) , Enterprise risk management (ERM) is emerging as a risk management methodology that is seemingly superior to that of traditional, silo-based risk management. Although ERM implementation is on the increase, research into ERM is still limited. There is, for instance, a lack of clarity within the literature regarding which factors lead to companies embracing ERM, as well as a lack of consensus on ERM’s benefits. The purpose of this study was therefore to explore the drivers of ERM implementation, its inhibitors and enablers, the benefits that are realised through ERM, as well as the advantages and disadvantages associated with ERM as a risk management methodology. Data were gathered through semi-structured, face-to-face interviews with seven risk practitioners working in the South African mining industry. The study found that drivers of ERM implementation include regulatory pressure and compliance with corporate governance and listing requirements, but that there are other incentives. Inhibitors of ERM implementation include the large amount of managerial time needed, competition with other initiatives, resistance, and low initial buy-in levels, as well as a shortage of experienced ERM practitioners. Regarding ERM enablers, the design of the ERM framework is seen as critical, as is sound project discipline in planning and organising the implementation, along with visible support from executive and senior management, and ongoing training. Benefits derived through ERM include greater confidence that the company has a complete understanding of its risk profile, better decision-making, and improved tracking of risk mitigation. Disadvantages associated with ERM include the tendency of it being regarded as a corporate administrative function, subjectivity, and difficulty in aligning ERM to short- and medium-term priorities, as compared to longer-term strategic issues. This study makes a unique contribution to the existing body of knowledge on ERM by exploring the disadvantages associated with ERM as a risk management methodology. At a practical level and with reference to the South African mining industry, in particular, this study provides more clarity on the rationale for adopting ERM, as well as the challenges associated with implementing and sustaining ERM programmes. Recommendations are made with respect to ERM in practice, as well as for further research on ERM.
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