Value of enterprise risk management: cross-sectional study of management perceptions at eThekwini Municipality.
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Key issue that this study addresses is the perceptions over enterprise risk management. Existing, are various debates over the value of enterprise risk management. There are compliance requirements and good governance recommendations for the implementation of enterprise risk management, however, organisations are constantly faced with the challenge of demonstrating the value of enterprise risk management to the end that executives are questioning the contribution, especially in times of rationalization and cost containment. Therefore, the purpose of the study was to explore the perceptions of enterprise risk management at eThekwini Municipality. This was a cross-sectional study conducted among 43 Risk Champions at eThekwini Municipality using a self-administered questionnaire. The entire population of Risk Champions was surveyed and hence the sample is the same as the population. The data lead to the following constructs of study: Resources relates to the level of establishment of enterprise risk management, Factors that affect implementation regarding enterprise risk management and adding of value, Alignment of ERM and governance process together with strategic thinking. These constructs are useful to understanding the perceptions of managers at eThekwini Municipality. Results found a significant relationship between resources and the implementation of enterprise risk management. There was also a relationship between value and the implementation of enterprise risk management. Most respondents was in agreement that risk features in the strategy process of their departments with a significant portion remain neutral, perhaps indicating that they are not sure regarding risk’s involvement in the strategy process of the department. The findings assisted in informing the enterprise risk management policy and strategy at eThekwini Municipality.