A research on the determinants of implementation level of enterprise risk management in organizations


Thesis Type: Postgraduate

Institution Of The Thesis: Bursa Uludağ University, Sosyal Bilimler Enstitüsü, Turkey

Approval Date: 2019

Thesis Language: Turkish

Student: Mert Mehmet Şener

Supervisor: Mehmet Eryılmaz

Abstract:

All organizations basically have a purpose of existing. Except for non-profit organizations, each business organization wishes to continue its commercial activities and profitability. In today's world, many businesses face threats which occur from different sources. These threats are the various risks that may arise internally or externally. These risks are managed by many large or small enterprises in traditional way. Risk management, which can be acceptable as a center of strategic management in any organizations, has recently been transformed into an Enterprise Risk Management (ERM) structure with a more integrated perspective and has been exposed to a growing level of interest. ERM is a tool that continually and methodically addresses all corporate risks in order to estimate, understand and treat risks arising from operating activities or external factors. In the literature, there are studies related to ERM. However, only a few studies have found answers to the question of what factors the implementation level of ERM are based on and why businesses implement this system. In the first part of the study, the concept of risk, the types of risk and risk management were explained. In the second part, the concept of ERM, other related concepts, ERM implementation process and components of ERM were explained. In the last section, the factors that are accepted as the precursors of the existence of ERM were explained. vi The research was conducted with 62 firms that are counted among the first 250 firms of Bursa. The findings revealed that when revenue and centralization degree of organizations are increased, implementation level of ERM in these organizations are also increased. However, the findings also showed that there were no effects of profitability and geographical differentiation degrees of organizations on their ERM implementation levels.