The Role of Internal Audit, Leadership Effectiveness, and Organizational Culture in Risk Management Effectiveness

Abstract

Purpose: To determine the extent to which the role of internal audit, leadership effectiveness, and organizational culture influence the effectiveness of risk management. Design/Method/Approach: This study uses an explanatory research method with a quantitative approach. Findings: The results of this study explain that effectiveness of risk management is needed in organizations to achieve organizational goals, especially those related to the role of internal audit, leadership effectiveness, and organizational culture. Theoretical Implications: This study concludes that to improve the effectiveness of risk management, it can be seen from the role of internal audit, leadership effectiveness, and organizational culture. All variables are measured through the dimensions and indicators of the existing theory. Practical Implications: This study obtained the results which show that internal audit, leadership effectiveness, and organizational culture have a significant effect on the effectiveness of risk management. Originality/Value: The originality of this research lies in the dimensions and indicators used to make research questionnaires which were distributed to respondents. Research Limitations/Future Research: The data collection technique used a survey method at private universities in Bandung and Cimahi which were registered in the List of Higher Education Region IV only. Paper type: Empirical