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The Influence of Chief Risk Officer on the Effectiveness of Enterprise Risk Management: Evidence from Oman

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Listed:
  • Hamdan Abdul Hafidh Al-Farsi

    (Public Authority for Social Insurance, PC: 115 Muscat, Oman.)

Abstract

This paper assesses the level of adoption and implementation of enterprise risk management (ERM) in Oman publicly listed companies and explores the influence of Chief Risk Officer (CRO) on ERM effectiveness. The data was collected using a structured questionnaire with a sample of 94 respondents including board of directors (BOD), chief executive officers (CEO), senior and junior management. The questionnaire was administered online using Survey Monkey for respondents to partake. Chi-square test, t-test, and Spearman rank correlation were used to validate the study hypotheses. The study found that there is a lack of awareness and knowledge of the procedures of enterprise risk management in most of the Omani publicly listed companies, and the level of adoption of ERM is at early stages. Moreover, the study confirmed that the Chief Risk Officer significantly influences and plays a key role in adopting and implementing ERM in the publicly listed companies in Oman. For Oman where there is a high dependency on oil, publicly listed companies are facing huge risk due to oil price volatility.

Suggested Citation

  • Hamdan Abdul Hafidh Al-Farsi, 2020. "The Influence of Chief Risk Officer on the Effectiveness of Enterprise Risk Management: Evidence from Oman," International Journal of Economics and Financial Issues, Econjournals, vol. 10(1), pages 87-95.
    • Handle: RePEc:eco:journ1:2020-01-11
    as

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    References listed on IDEAS

    as
    1. Madhu Acharyya & Chris Brady, 2014. "Designing an Enterprise Risk Management Curriculum for Business Studies: Insights From a Pilot Program," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 17(1), pages 113-136, March.
    2. Arena, Marika & Arnaboldi, Michela & Azzone, Giovanni, 2010. "The organizational dynamics of Enterprise Risk Management," Accounting, Organizations and Society, Elsevier, vol. 35(7), pages 659-675, October.
    3. Mark Abkowitz & Janey Camp, 2017. "Structuring an Enterprise Risk Assessment Protocol: Traditional Practice and New Methods," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 20(1), pages 79-97, March.
    4. Beasley, Mark S. & Clune, Richard & Hermanson, Dana R., 2005. "Enterprise risk management: An empirical analysis of factors associated with the extent of implementation," Journal of Accounting and Public Policy, Elsevier, vol. 24(6), pages 521-531.
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    More about this item

    Keywords

    Chief risk officer; enterprise risk management; publicly listed companies; Oman;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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