The impact of enterprise risk management practices on malaysian public higher educational institution performance: a literature review

Abstract

Presently, all organizations are facing by various types of risk. The risk can be occurred anywhere and to anyone. Therefore, they need to manage risk properly to reduce cost and other consequences. Enterprise Risk Management (ERM) was introduced many years ago and currently implemented by many countries as well as organizations due to positive impact especially in their performances. In Malaysia, it was first implemented around ten years ago and the organizations are recommended to use it as a tool or basis to recover any potential risks. There are many factors drive to ERM adoption in organizations that gave big impact on their performances. A part of that, the aim of this paper is to construct a conceptual framework that describes the relationship between factors or drivers to ERM adoption and ERM impact on performance. This relationship will moderate by two other factors which are quality of Board of Directors (BOD) and quality of internal audit. The area of this paper will be focus on Malaysian Public Higher Educational Institution (IPTA) which is only five institutions will be selected as respondents. The selection of these institutions was made based on top five ranking university in Malaysia. The potential respondents among higher and middle level management were identified and they will answer a set of questionnaire and the data will be analyze using Statistical Package for Science Social (SPSS) and Structural Equation Modeling (SEM). The expected finding from this paper is there are positive significant relationship between both independent and dependent variables moderated by both parties which is BOD and internal audit.