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Organisational culture and enterprise risk management: The Australian not‐for‐profit context
Author(s) -
Chen Jinhua,
Jiao Lu,
Harrison Graeme
Publication year - 2019
Publication title -
australian journal of public administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.524
H-Index - 41
eISSN - 1467-8500
pISSN - 0313-6647
DOI - 10.1111/1467-8500.12382
Subject(s) - organizational culture , business , adaptability , enterprise risk management , profit (economics) , maturity (psychological) , risk management , marketing , public relations , management , economics , finance , political science , law , microeconomics
With the increasing emphasis on risk management in not‐for‐profit organisations, this study is timely in its examination of risk management practices in the Australian not‐for‐profit sector. Specifically, the study investigates the relation between not‐for‐profits’ organisational culture and the maturity of enterprise risk management (ERM) practices. The results show that the organisational culture factors of Outcome Orientation (valuing achievements and results) and Innovation (valuing receptivity and adaptability to change) are associated with the maturity of not‐for‐profits’ ERM. This finding demonstrates the important role that organisational culture plays in shaping ERM practices in not‐for‐profit organisations and the crucial role that leaders play in creating and nurturing such a culture within their organisations. The results also have implications for regulatory policy‐making in, and for, the not‐for‐profit sector.