• ISSN: 2301-3567
    • Frequency: Quarterly (2013-2014); Monthly (2015-2017); Quarterly (Since 2018)
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Mia Hu
    • Abstracting/ Indexing:  Electronic Journals Library, Ulrich's Periodicals Directory, MESLibrary, Google Scholar, and Crossref.
    • E-mail: joebm@ejournal.net
JOEBM 2018 Vol.6(1): 1-12 ISSN: 2301-3567
DOI: 10.18178/joebm.2018.6.1.543

Factors Affecting Implementation of Enterprise Risk Management: An Exploratory Study among Saudi Organizations

Yousef Aleisa
Abstract— Enterprise risk management (ERM) has received significant attention in recent years in order to establish a comprehensive approach for managing different types of events (risks and opportunities) relevant to organizations’ strategic objectives. Although the number of ERM implementations among Saudi organizations has grown significantly, there is a lack of knowledge about the key factors to be considered when implementing ERM. Therefore, the purpose of this study is to empirically determine the factors affecting ERM implementation based on how the 44 ERM dimensions, derived from the Committee of Sponsoring Organizations ERM Integrated Framework, were actually implemented in a sample of Saudi organizations. The exploratory factor analysis method is used to analyze a sample of 103 responses received through an online survey questionnaire. The results of the exploratory analysis support the retention of three factors that require specific considerations when implementing ERM, namely, (i) the ERM structure and standards, (ii) the enterprise’s portfolio of risks and opportunities, and (iii) risk oversight and corporate governance. This study differs from previous research because it is the first to explore ERM implementation among Saudi organizations and because its findings provide a foundational understanding of the key factors affecting ERM implementation. This study also suggests an ERM implementation framework that addresses identified factors and guides organizations on how to enhance ERM implementation.

Index Terms— Corporate governance, enterprise risk management, exploratory factor analysis, and risk management.
Yousef Aleisa is with Saudi Basic Industries Corporation (SABIC), Riyadh, Saudi Arabia (e-mail: jousef88@hotmail.com).

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Cite: Yousef Aleisa, " Factors Affecting Implementation of Enterprise Risk Management: An Exploratory Study among Saudi Organizations," Journal of Economics, Business and Management vol. 6, no.1, pp. 1-12, 2018.

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