Critical Success Factors for Dynamic Enterprise Risk Management in Responsive Organisations: A Factor Analysis Approach

Abstract

Globalisation and technology advancements have disrupted the organisational landscape and with the proliferation of new technology; risk management is fundamental to transforming the business especially considering the dynamic nature of the digital society organisations now exist in. However, the challenge faced by the enterprise risk management (ERM) function operating in such a dynamic and transformative environment, is the capability to continuously innovate, evolve and transform its risk management processes to meet the needs of the organisation. Questionnaire survey research examined the relative importance of 18 critical success factors for dynamic ERM. Factor analysis revealed that the appropriate grouping of the 18 critical success factors (CSFs) are ERM charter, ERM processes, and ERM business alignment. These findings should empower organisations to identify risk management processes influencing agility in the risk management practise applied.