Effects of Organisational Culture and Top Management Commitment on Enterprise Risk Management: A Case of Commercial Joint- Stock Banks in Ho Chi Minh City

Abstract

Enterprise Risk Management (ERM) is a comprehensive risk management approach with a risk portfolio perspective. ERM is considered best practice for high-risk entities like banks. However, the effectiveness of ERM is affected by many factors. The objective of the study attempts to develop the basic knowledge and empirically examine the impact of organizational culture on the effectiveness of ERM through the mediation of executive commitment in the relationship between organizational culture and ERM effectiveness, as well as the moderating role of required resources in the relationship between the commitment of MOB and ERM effectiveness. Data were collected using questionnaires sent to managers and staff at functional departments related to ERM in joint-stock commercial banks in Ho Chi Minh City (HCMC). The results show that the determinants of organizational culture are leadership, organizational structure, nature of the business, human resource management (HRM) practices and internal communication, both directly and indirectly through the commitment of BOM to ERM effectiveness.