Organizational Factors in Enterprise Risk Management Effectiveness: A Conceptual Framework

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: