RELATIONSHIP BETWEEN ORGANIZATIONAL CULTURAL...
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International Journal of Management (IJM)
Volume 11, Issue 5, May 2020, pp. 1155-1168, Article ID: IJM_11_05_105
Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=5
Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.11.5.2020.105
© IAEME Publication Scopus Indexed
RELATIONSHIP BETWEEN ORGANIZATIONAL
CULTURAL DRIVERS AND RISK
MANAGEMENT PLAN FROM ENTERPRISE
RISK MANAGEMENT (ERM) PERSPECTIVE -
(A STUDY WITH REFERENCE TO THE
PROJECTS HANDLED BY IT COMPANIES
IN THE UAE)
Venugopal Karuthedath Vijayan
Research Scholar, Banasthali Vidyapith, Newai, Rajasthan, India
Dr. Neelam Sharma
Associate Professor, Banasthali Vidyapith, Newai, Rajasthan, India
ABSTRACT
Risk management has gained attention to the organizations, project management
experts and other stakeholders due to the increasing trend of uncertainties in projects
which finally leads to delay in delivery of the project, increasing costs and the
customer dissatisfaction. Hence, it is imperative to have a project management system
that should be able to contain all the risks and thereby reduce the uncertainties. In the
traditional risk management system, the project management team focuses on risk
management plan, risk identification, risk analysis and risk treatment so that the pure
risks can be controlled by the team work of all the departments. Many organizations
fail to recognize the fact that there should be a risk management culture for the
company as organizational culture has been highlighted by management experts in
modulating strategies to overcome unforeseen contingencies and thereby achieve the
objectives. Hence, Enterprise Risk Management (ERM) has been adopted by many
companies globally. The study is an attempt to know the impact of the cultural drivers
on risk management plan of companies that manage IT projects in UAE.
Key words: Risk Management, Project Management, Risk Management Plan, Risk
Identification, Risk Analysis, Risk Treatment, Organizational Culture Strategies,
Enterprise Risk Management
Relationship between Organizational Cultural Drivers and Risk Management Plan from Enterprise
Risk Management (ERM) Perspective - (A Study with Reference to the Projects Handled by IT
Companies in the UAE)South Sulawesi Province, Indonesia
http://www.iaeme.com/IJM/index.asp 1156 [email protected]
Cite this Article: Venugopal Karuthedath Vijayan and Dr. Neelam Sharma,
Relationship between Organizational Cultural Drivers and Risk Management Plan
from Enterprise Risk Management (ERM) Perspective - (A Study with Reference to
the Projects Handled by IT Companies in the UAE), Indonesia. International Journal
of Management, 11 (5), 2020, pp. 1155-1168.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=5
1. INTRODUCTION
It can be observed that the firms operating across the world confront higher degrees of risk
due to the increasing impact of random factors which are highly uncertain and unpredictable
(WEF, 2019). The risks can be varied in nature depending upon factors such as political,
economic, geographical, technological, environmental etc and the issues gather serious
velocity globally due to the shared goals and divergent values (WEF, 2019). The range and
intensity of the risk has gathered strong momentum in information technology industry also
due to the rapid strides in the number of competing firms coupled with slower growth of the
industry and the firms that operate in IT industry are forced to manage the project with utmost
care and pro-active planning to make the project successful as the project failures are not rare
in this industry. The same trend is visible in a country like United Arab Emirates where the IT
industry is one of the fastest growing sectors which is promoted by the knowledge
management initiatives of the UAE government.
2. PROJECT RISK MANAGEMENT
A project is defined as a temporary endeavor undertaken by a firm with a view to produce a
distinctive product, service, event or outcome (PMBOK Guide, 2018). From this definition, it
is obvious that a unique project is a one-time affair with a definite beginning and ending
within a constrained budget or cost and well defined scope with specific performance
requirements. From the above, we may say that a project is the application of focused
activities to generate deliverables, but it should be kept in mind the fact that project
deliverables are only a means to an end and hence, the real effort in performing a project is to
attain given outcomes that should provide specific measurable benefits (PM2
Methodology
Guide, 2018). Project Management is the application of knowledge, tools, skills and
techniques on activities related to project with the objective of achieving pre-determined
goals. It is a management process that comprises of planning the activities, translate into
actions, measure the progress and achievement and ultimately the performance as per the pre-
determined objectives and targets (CBP, 2005). In project management, the term ‗risk‘ is
known as an uncertain event or condition that has either a positive or negative effective on the
objectives of a project (Pressman, 2005) and the specific things that may happen which is
detrimental to the successful completion of a project is called as risk events (Keeling, 2006).
Every human endeavor involves risks and hence, it should be managed effectively (Wilder
and Davis, 1998), and hence, risk management is imperative for the successful achievement
of objectives of a venture. Project risk management can be defined as the art and science of
identification, analysis and responding to the uncertainties that emerges during the life period
of a project in such a way as to achieve the project objectives by satisfying all the
stakeholders (Schwalbe, 2016). So management of risk is the way by which the risks are
contained by an organization through the application of management principles such as
planning, organizing, controlling and directing all the activities to successfully achieve the
project objectives (Moeller, 2007).
Venugopal Karuthedath Vijayan and Dr. Neelam Sharma
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3. ENTERPRISE RISK MANAGEMENT
The research work in the field of risk management state that the traditional risk management
can be considered to be a reactive approach based on managerial and administrative decision
making process. Based on managerial process, it consists of four different functions such as
planning, organizing, directing/leading and controlling that is deployed with a view to reduce
the adverse effects of uncontrollable factors that creates loss for the organization and that too
with the objective of optimization (Head, 1972). Traditional risk management focuses on pure
risks which are managed by various departments of an organization.
On the other hand, the modern approach which is termed as Enterprise Risk Management
has been becoming important in the modern business scenario across the world. The
Enterprise Risk Management (ERM) can be defined as a process, effected by an entity‘s board
of directors, management and other personnel, applied in strategy setting and across the
enterprise, designed to identify potential events that may affect the entity, and manage risk to
be within its risk appetite, to provide reasonable assurance regarding the achievement of
entity objectives (COSO, 2017).
4. RISK MANAGEMENT IN IT PROJECTS
Among the tertiary sectors of an economy, the Information Technology (IT) is one of the
fastest growing segments in all countries of the world (Hartman & Ashrafi, 2002). A wide
range of applications, equipments and services exist as well as emerge under the ambit of IT,
as its application has permeated intensively in all sorts of business activities in the form of
support to various functions such as operations, management decisions, management
information system, analysis, integration of all the activities etc (Keen, 1994). Despite the fact
that the technological aspects of IT has been growing due to the advancement of technological
innovations, the failure of IT projects have been found to be quite high, both in advanced
countries as well as developing countries of the world (Tchankova, 2002). In a study
conducted by Standish Group (CHAOS, 2014), it was found that nearly 90% of the projects
were completed late, 66% were considered to be deemed failures due to the inability to
achieve its goals, and approximately 30% of the projects were scrapped. Out of the total
sample of 7400 IT projects, only 10% were completed successfully which indirectly imply
that the customer satisfaction level was only 10% which is a meager figure as compared to the
amount of cost, time and resources utilized (Rashad & Kaizer, 2011). Based on the above
study, Fereshteh, Michèle and Satyaveer (2012) found that the following specific factors
amount to failure of IT projects:
Ambiguous project aims not matching with vision and mission
Lack of proper structure for the organization and team.
Insufficient project management discipline
Absence of in-depth technical knowledge
Lack of technology and infrastructure support and system
Unanticipated increase in financial cost
Among the factors mentioned above, three factors are primarily related to cultural drivers
which are vision and mission, structure of organization and team and proper infrastructural
support system.
5. ORGANIZATIONAL CULTURE AND RISK MANAGEMENT
In broader perspective, the culture of an organization can be defined as the ideologies, beliefs,
norms and shared values maintained by the members of an organization which normally
Relationship between Organizational Cultural Drivers and Risk Management Plan from Enterprise
Risk Management (ERM) Perspective - (A Study with Reference to the Projects Handled by IT
Companies in the UAE)South Sulawesi Province, Indonesia
http://www.iaeme.com/IJM/index.asp 1158 [email protected]
influence the behavioral dimensions of the individuals who are employed (McKenna, 1992;
Schein, 1992; Schultz, 1995). According to Skinner (1971), in behavioral terms,
organizational culture can be considered to be a set of contingencies of reinforcements that is
applicable to the staff members of an organization who share common knowledge. Based on
ERM framework, it can be stated that the modulation of a risk management culture driven by
cultural drivers such as vision, mission, organizational structure, system, leadership, job
design and role definition can generate a risk management culture in the organization which
forms a concrete basis for the succeeding stages in the risk management (IIRM, 2016). A plan
that is based on the cultural drivers and proper organizational culture will be unique and
effective (Benhalm, 1999).
6. LITERATURE REVIEW
The issue related to risk management has become popular by the publication of research work
by Ibbs & Kwak (2000) related to sectors such as telecommunications, information
technology and manufacturing. Since uncertainty and risks are related, various articles were
published by Wideman (1992), Perminova et al (2008) and Bernstein (1998). Risk and
uncertainty was given importance by authors such as Ward and Chapman (2003) also in their
research work. Various studies have been conducted in the realm of risk management which
focuses on traditional risk management as well as modern risk management practices. In their
study on strategic risks and corporate performance, Miller and Bromiely (1990) have given
various measures of corporate risk management by using various risk factors in corporate
strategy development. In a study conducted by Ali (2001), recommends a fundamental shift in
managing the risks in projects and recommends that the shift should be strategy based project
management which is a part of real time management of risks, uncertainties and opportunities
based project life cycle management approach. Related to the same area, Diana and Joyce
(2002) attempted to make an empirical study on current practices in project management. By
stressing the importance of holistic risk management, Marks, Richard & Dana (2005),
explains the role of ERM in managing the portfolio risks that organizations confront
currently. Related to IT sector the paper published by Bannerman (2008) states that
controlling the level of risk in IT projects can be treated as a major contributor of success in
those projects. The research work by Bud, Deo and Hilya (2019) on the impact of project risk
management maturity on performance examines the utility of project risk management
maturity (PRMM) for projects undertaken by various organizations in different domains.
7. PURPOSE OF STUDY
In risk management, the organizations follow the traditional path of preparation of risk
management plan, risk identification, risk analysis and risk treatment (Crouhy, Galai and
Mark, 2014) without giving much attention to the cultural background of an organization with
respect of risk management (Douglas, Blanchard and Hendry, 2012). In Enterprise Risk
Management (ERM), the cultural factors are given much priority in developing a risk
management culture for the organizations and one of the preconditions for a successful risk
management strategy an effective risk management culture (Altunas, 2011). The purpose of
the study is to investigate the relationship between various cultural drivers on risk
management plan and its various dimensions.
Venugopal Karuthedath Vijayan and Dr. Neelam Sharma
http://www.iaeme.com/IJM/index.asp 1159 [email protected]
8. RESEARCH OBJECTIVES
The objective of conducting this study is to examine the following:
To examine the various cultural drivers that enable an organization to develop risk
management culture which is imperative for the successful completion of various
project by managing risk effectively.
To investigate the impact of various cultural drivers on risk management plan and its
various components such as development of risk criteria, risk tolerance, risk
management policy and risk management framework.
To make a comparative analysis of organizations that has developed risk management
culture to those organizations where it is lacking.
9. BACKGROUND OF THE STUDY
UAE has targeted an ambitious target to trigger off high pace of growth in information
technology sector through new product development, software programming, manufacturing
etc. In addition to these activities, the country has also earned as the leading hub of re-export
for consumer ICT goods to other parts of the world, which has left the indigenous IT industry
less developed which allow opportunities for foreign entities to seize market share (Dubai
Chamber, 2016). The government also provides 100% repatriation of capital and profits and
corporate tax exemptions for a long period of 50 years. Thus the demand for IT projects and
products have been surging at a rapid rate both in the private sector as well as government
sector. The total IT market for UAE has grown from USD.15.8 billion in 2013 to more than
USD.17.72 billion in 2016, thus recording a CAGR of more than 3% percent during this
period. It is expected to grow to reach a figure of USD.30 within two years (Knight, 2019).
Various projects are also envisaged by the government to develop knowledge based economy
which is obvious from activities such as funding overseas training for national students in the
field of ICT, creation of Smart Pass system as a digital framework for the operations of the
government services and ministries, AI Strategic Plan 2031 etc.
10. RESEARCH QUESTIONS
How far the ERM is better than the traditional risk management system in promoting
the success of projects?
What is the relationship between the various cultural drivers and the various
dimensions of risk management plan in project management?
Is it possible for organizations to achieve success in projects without proper
organizational culture that promote risk management?
11. CONCEPTUAL FRAMEWORK OF THE STUDY
The theoretical framework of the study is developed on the basis of ERM perspective. The
ERM framework developed by IIRM is chosen to consider as a guideline for interpreting the
relationship between organizational context and culture on risk management and the success
of the projects. The ERM framework is outlined in figure.
Relationship between Organizational Cultural Drivers and Risk Management Plan from Enterprise
Risk Management (ERM) Perspective - (A Study with Reference to the Projects Handled by IT
Companies in the UAE)South Sulawesi Province, Indonesia
http://www.iaeme.com/IJM/index.asp 1160 [email protected]
Source: IIRM, A Practical Guide to Enterprise Risk Management (2015).
Figure 1 ERM Framework
12. FORMULATION OF HYPOTHESIS
The following hypotheses are formulated to develop the study.
H0: The cultural drivers do not have any role in designing an effective risk management plan
in projects as these drivers are not related to the various dimensions of risk management plan
in projects.
Ha: The cultural drivers have an influencing role in risk management plan as the various
dimensions of risk management plan are related to the different cultural drivers.
13. RESEARCH METHODOLOGY
The study is an empirical approach to ascertain the relationship between cultural drivers on
various components of risk management plan. The cultural drivers are selected based on the
ERM framework developed by IIRM. The cultural drivers selected as per the model are
vision, mission, structure, system, leadership, job design and role definition and the
dimensions of risk management considered in the study are risk criteria, risk tolerance, risk
management policy, risk management framework. A descriptive approach is made to assess
the relationship between the variables by using mono-quantitative method of collection of
information on the basis of numerical figures. An inductive logic is applied. The research
strategy adopted is survey method based on a questionnaire developed that consists of 70
questions based on the various components of cultural drivers as well as the dimensions of
risk management plan. The philosophical approach adopted is positivism and realism.
13.1. Scale
For eliciting information through questionnaire, a five point Likert scale is chosen which
provides the primary respondents the freedom to select own opinion out of five options and at
the same time it is relatively easier for the researcher to obtain the information. The scale is
furnished in table 1.
Table 1 Five Point Likert Scale
Strongly
Disagree Disagree Neutral Agree Strongly Agree
1 2 3 4 5
Risk
Management
Culture
Risk
Management
Plan
Risk
Identification
Risk
Analysis
Risk Treatment
CULTURAL DRIVERS
Vision, Mission
Structure
System
Leadership
Job Design
Role Definition
Risk Criteria
Risk Tolerance
Risk Management
Policy
Risk Management
Framework
Stakeholder
Consultation
Organizational
Records
Risk Rating
Risk Tolerance
Risk Priorities
Control of Risk
Risk Ownership
Risk Treatment
Resources and
Timeframe
Venugopal Karuthedath Vijayan and Dr. Neelam Sharma
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13.2. Population and Sample
The total population of the study consists of various staff members associated with the tasks
pertaining to projects and these staff was selected from small and medium IT companies
which are engaged in data center, network architecture, enterprise ICT, infrastructure
solutions etc.
From the population, a total sample of 40 companies are chosen based on criteria such as
turnover, number of staff, number of projects in hand and the number of years of operations.
The sample of companies is classified into two categories based on the parameters mentioned.
The criteria for selection of the sample are provided in the table 2.
Table 2 Categorization of Sample
Samples. Turnover
(USD
Millions)
Number of
Staff
Number of
Projects in
Hand
Years of Operation in
UAE
Trend of
Profitability
S1 8 and above 50 and above 5 and above More than
5 years
ROI > 8%
S2 8 and above 50 and above 5 and above More than 5 years ROI < 8%
The samples are selected based on stratified random sampling method as the category of
people working in a project is different. From the selected 40 companies, 320 staff members
working in different levels are chosen with an acceptance margin of error of 5% and with a
response distribution of 80% and above. The sample size and its distribution is provided in
table. S1 is the first sample and S2 is the second sample.
Table 3 Distribution of sample staff based on job description.
Sl. No. Job Description Sample Numbers S1 S2
1 Project Managers 40 20 20
2 Team Members 80 40 40
3 Resource Managers 40 20 20
4 Program Manager 40 20 20
5 Portfolio Managers 40 20 20
6 Project Facilitators 40 20 20
Risk Management Analyst 20 20 0
Aggregate 320 180 140
The sample size of firms is chosen by categorizing the companies into two broad
categories based on its performance during the last three two years (2017-18 and 2018-19).
The companies were broadly categorized into two based on revenue parameters with a
performance range of 0-8% and 8% and above return on investment (ROI). Thus out of total
of 40 companies, 20 companies were chosen whose performance is less than 8% ROI yearly
and the rest having 8% and above ROI yearly. On the basis of this, the staff members were
chosen out of which 180 staff member from the first sample category which is having a ROI
of 8% and above. The remaining 140 staff members belong to those companies where the
ROI is less than 8%.
13.3. Data Collection
The major source of data is the primary data which is collected from 320 respondents by
administering a questionnaire that consists of 70 questions associated with two broad areas
such as cultural drivers and risk management plan which are the initial preliminary stages of
Relationship between Organizational Cultural Drivers and Risk Management Plan from Enterprise
Risk Management (ERM) Perspective - (A Study with Reference to the Projects Handled by IT
Companies in the UAE)South Sulawesi Province, Indonesia
http://www.iaeme.com/IJM/index.asp 1162 [email protected]
the implementation of ERM. The primary data is made more appropriate with the support of
the secondary data collected from the organizations‘ database, journals, websites and
academic source such as text books.
Table 4 Dimensions of cultural drivers and risk management plan.
Cultural Drivers Risk Management Plan
Sl.
No. Drivers
Sl.
No. Dimensions of Plan
1 Vision, Mission 1 Risk Criteria
2 Structure 2 Risk Tolerance
3 System 3 Risk Management Policy
4 Leadership 4 Risk Management Framework
5 Job Design
6 Role Definition
13.4. Reliability Statistic
The questionnaires were distributed across the sample organizations from where 320
respondents were selected and the response was received from 306 staff members which is
approximately 95% out of which 298 questionnaires were found to be relevant and apt for the
study. The reliability and consistency of the response was tested by using Cronbach‘s Alpha,
the details of which is provided in the table
Table 5 Reliability Statistics
Sl. No. Concepts Cronbach’s
Alpha
Cronbach’s Alpha
Based on Standardized
Items
No of
Items
1 Cultural Drivers 0.817 0.809 6
2 Risk Management Plan 0.864 0.817 4
The reliability statistics show that the Cronbach‘s Alpha values are above the stipulated
threshold of 0.70 and hence compatible to the test of reliability, internal consistency and
soundness of information.
The mean and standard deviation of the two classes of samples are provided in table 6 and 7.
Table 6 Mean and standard deviation values of Cultural Drivers of S1 and S2.
Cultural Drivers
Sl. No.
Dimensions
Sample 1 (S1) Sample 2 (S2)
Mean Standard
Deviation
Mean Standard
Deviation
1 Vision, Mission 4.64 0.475 2.34 0.489
2 Structure 4.28 0.541 2.28 0.524
3 System 4.05 0.569 2.12 0.625
4 Leadership 4.71 0.429 3.71 0.507
5 Job Design 3.87 0.615 2.15 0.712
6 Role Definition 3.80 0.639 2.09 0.703
Mean 4.23 0.545 2.45 0.593
In table 6, the mean and standard deviation of the cultural drivers of S1 and S2 is derived.
In S1, the mean value of the aggregate mean is 4.23 which demonstrate high level of
agreement in terms of the response of the respondents which implies that there is unanimity in
the opinion of all the respondents that the cultural drivers influence the risk management plan
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of the organizations in which they are employed. The average of the standard deviation values
of S1 sample is 0.545 which is below the stipulated threshold level of 0.70 and hence, we can
presume that the data is reliable, consistent and sound. But in the case of S2 samples, the
mean value of the averages is 2.45 which imply that there exists lack of unanimity and the
values are nearer to 2 in the Likert scale which shows that respondents disagree with the
contention that there exists relationship between organizational cultural drivers and risk
management plan. The standard deviation of S2 is below the threshold level and hence we can
assume that the data is reliable, accurate and sound.
Table 7 Mean and Standard Deviation Values of Risk Management Plan of S1 and S2.
Risk Management Plan
Sl. No.
Dimensions
Sample 1 (S1) Sample 2 (S2)
Mean Standard
Deviation
Mean Standard
Deviation
1 Risk Criteria 4.88 0.457 3.07 0.564
2 Risk Tolerance 4.74 0.536 3.45 0.628
3 Risk Management Policy 4.02 0.659 2.03 0.683
4 Risk Management Framework 3.89 0.581 2.49 0.578
Mean 4.38 0.558 2.76 0.613
In table 7, the mean and standard deviation values of risk management dimensions are
considered for S1 and S2. The S1 sample mean of the average value of the dimensions is 4.38
which show that the risk management dimensions are important and the cultural drivers
influence these dimensions while making the plan. The standard deviation values are less than
the threshold level and hence it is accurate, reliable and sound. In the case of S2, the average
values are 2.76 which is lower than 3 in the Likert scale which means that there is no
agreement in between the respondents that the cultural drivers influence the risk management
plan dimensions. The standard deviation value of S2 is 0.613 which is lower than the
threshold level.
13.5. Relationship between Cultural Drivers and Risk Management Plan
Table 8 Correlation between cultural drivers and risk management plan dimensions of companies
under S1.
Risk
Criteria
Risk
Tolerance
Risk
Management
Policy
Risk
Management
Framework
Vision and Mission .723 .628 .937 .911
Structure .401 .678 .728 .689
System .389 .652 .698 .758
Leadership .666 .857 .766 .526
Job Design .364 .728 .457 .537
Role Definition .429 .766 .642 .507
Table 8 shows the correlation between the various cultural drivers and the risk
management plan elements of those companies whose return on investment is more than 8%
consistently for the previous two years. As far as vision and mission of the organization is
concerned, it shows high level of positive correlation with all the risk management plan
variables as the plan and strategy of an organization depends upon its mission and vision
directly. The structure is less correlated with risk criteria chosen but it is strongly correlated
Cultural
Drivers
Risk Management
Plan
Relationship between Organizational Cultural Drivers and Risk Management Plan from Enterprise
Risk Management (ERM) Perspective - (A Study with Reference to the Projects Handled by IT
Companies in the UAE)South Sulawesi Province, Indonesia
http://www.iaeme.com/IJM/index.asp 1164 [email protected]
with risk tolerance, risk management policy and the risk management framework. In the case
of system also, it is less correlated with risk criteria but highly correlated with the other
elements. The cultural driver leadership is very strongly correlated with all the elements in
risk management and the correlation level is very high for risk tolerance. In the case of job
design, the correlation is strong for risk tolerance. Role definition is highly correlated with
risk tolerance and risk management policy.
14. FINDINGS OF THE STUDY
From the study, the following findings are derived.
The companies that are successful in maintaining a better return on investment
considers cultural drivers and risk management culture play a substantial role in
making the risk management plan successful. This is clear from the example of the
sample 1 (S1) companies where the study reveals a strong correlation in between the
cultural variables and its impact on risk management plan. In the case of S2
companies, the correlation is weak.
Among the cultural drivers, elements such as vision, mission and organizational
structure has got a strong impact on the risk management plan of the companies which
are consistently making a track record of progress.
There are certain companies in which the staff employed in many of the IT projects
fail to realize the importance of vision and mission while planning the projects and
developing risk management plan. The various elements of risk management plan
such as risk criteria, risk tolerance, risk management policy and risk management
framework should be very closely related to the vision and mission of the companies.
The ERM concept has not been very much popular in many of the companies chosen
for the study. Only few companies have given attention to this concept.
From the findings, it can be observed that an organization should have a risk management
culture to develop and plan risk management plan for the projects. The top management
should take the initiative to implant the ERM for which a strong organizational culture for
risk management is imperative. The ERM concept has not been researched in detail in the
management realm and hence, there is ample opportunity for research in this field.
15. CONCLUSION
Enterprise Risk Management (ERM) is a holistic approach towards the application of risk
management system in projects handled by organizations. Since the risks of projects have
been increasing at an exponential rate, it is necessary to have a holistic approach towards the
various risks that arises in a typical project. The study is an attempt to explore the role of
organizational culture drivers in influencing the risk management plan of the IT companies in
the UAE. Since the ERM concept advocates the development of an appropriate organizational
risk management culture, the study provides the initial basis for the development of a culture
by observing the impact of various cultural drivers while preparing risk management plans.
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