Effect of information technology dimensions on enterprise risk management

Abstract

Financial institutions are exposed to many risks from different directions. Too many areas need to be protected which is not possible unless a holistic and comprehensive risk management process is in order. Enterprise risk management (ERM) proponents argue that ERM is that process which is a good instrument to overcome today’s challenges. Moreover, researchers claimed that an effective risk management is impossible without effective technology. Therefore the purpose of this study is to evaluate the effect of different dimensions of technology on ERM among Iranian financial institutions. This study used survey questionnaire to evaluate ERM and the level of companies’ technology including IT strategy and IT structure in organizations. This study found that there is positive and significant relationship between all dimensions of technology and ERM.