Effectiveness of enterprise risk management practices: A case study

Abstract

Enterprise risk management (ERM) is used to manage, integrate and aggregate all types of risks encountered by the concerned organisation. Despite having established framework and guidelines, the implementation of ERM at divisional level seemed to be lacking. There are gaps in the actual risk management practices that need to be studied and narrowed to ensure a more effective implementation of risk management. Therefore, the objective of this study is to identify characteristics of effective risk management practices and to gauge the effectiveness level at a telecommunication company. The gaps between the actual practices and the expected practices based on twenty-four (24) identified characteristics are identified and compared upon before recommendations are made to close the gaps and further enhance the risk management practices. For the purpose of this research the self-administered, web-based questionnaires were distributed to a total number of 130 engineers who were actively involved with network infrastructure planning, development and maintenance. The feedbacks received indicated that the respondents agreed with the identified characteristics of effective risk management practices and generally agreed that the effectiveness level of current risk management practices in the company is moderate or average. Furthermore, the gap analysis based on the variances indicates that there are rooms for further improvement. The study is important for more effective risk management practices in telecommunication companies.