Thesis (MBA)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: When it comes to risk management, academic opinion is divided into two camps. There are those
who argue that risk management is a waste of resources and time, and that in spite of all the effort
invested, it does not add any economic value to an organisation. On the other hand, there are
those who believe that risk management not only safeguards, but also actively contributes to the
value of an organisation.
This study was an attempt to obtain empirical evidence from the South African sector to support
one of the two abovementioned arguments. In doing so the study addresses the research
problems of whether risk management and specifically Enterprise Risk Management, creates value
for an organisation, and whether the fact that a company has a risk management program in place
should influence investor decisions
The study was conducted in the following way: Measurements of the maturity of the risk
management systems and the implementation dates of these systems were obtained from the
senior managers of a number of organisations by means of a questionnaire. This data was then
compared with annual measurements of the value of these organisations that were taken between
2000 and 2013. To determine if there was a relationship between the value of an organisation and
the risk management maturity tests were conducted to look for the following:
i. A statistically significant relationship between the most recent measure of organisational
value and the maturity of risk management.
ii. A statistically significant relationship between risk management maturity and the most
recent rate of organisational value increase.
iii. A discernible difference between the rate of organisational value change before and after
the implementation of an Enterprise Risk Management system.
iv. A statistically significant relationship between risk management maturity and organisational
value subsequent to the introduction of an Enterprise Risk Management system.
The study found evidence of a significant gain in the rate of organisational value increase directly
subsequent to the introduction of an Enterprise Risk Management system, but also that the
increased rate was not sustained. Other tests yielded contradictory or indecisive results that did not
lead to clear conclusions, but illuminated future research directions.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/97324 |
| Date | 04 1900 |
| Creators | Gerber, Guillaume |
| Contributors | Linke, Arthur, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | x, 91 pages |
| Rights | Stellenbosch University |
Page generated in 0.013 seconds