A contingency-based framework for managing enterprise risk

• Main Authors: Nedaei, Bahareh Hossein Nezhad, Abdul Rasid, Siti Zaleha, Sofian, Saudah, Basiruddin, Rohaida, Kalkhouran, Abolfazl Amanollah Nejad
• Format: Article
• Published: Wiley 2015
• Subjects: HD28 Management. Industrial Management
• Online Access: http://eprints.utm.my/id/eprint/55442/; http://dx.doi.org/10.1002/joe.21604

Although studies focused on contingency theories of enterprise risk management (ERM) as a critical facet of an organization's management control system abound, they have yielded few significant results. A review of the literature on ERM contingency theory and the factors that can affect ERM leads to a discussion of the impact of decentralization, organization size, and enterprise resource planning (ERP). Several hypotheses on possible interactions result in a contingency-based model for managing enterprise risk that takes into account the effects of these three factors on ERM practices, and offers organizational leaders guidance on how best to improve performance.