Risk governance insights in Maltese organisations : a comparison

Abstract

PURPOSE: This dissertation aims to gain insights into Risk Governance in Maltese Organisations. This study examines the perceptions of employees in Maltese organisations on risk governance. It also aims to create a risk governance model by extracting risk governance factors. It also assesses the impact the different demographics of Maltese organisations in this regard. DESIGN: A mixed-methods research approach was used for this dissertation, where a questionnaire and interview, consisting of the same questions for both research tools, was dispersed. One hundred and nine participants completed the questionnaire whereas 12 participants were interviewed. FINDINGS: Most of the participants in the study agreed that the Maltese Organisations they work for implement risk governance, enterprise risk management and corporate governance correctly. Five factors were extracted to form a risk governance model showing factors which are perceived to be important in Maltese organisations. The factors loaded to form a risk governance model were ‘Enterprise risk management effectiveness’, ‘Risk governance principles’, ‘Good corporate governance’,’ Board effectiveness and corporate governance’ ‘Risk governance provisions, Frameworks and Codes’. CONCLUSIONS: Risk governance is applied correctly in Maltese Organisations, however, more education and training is required on risk governance in Malta as many employees still do not know much about their risk governance processes. Maltese organisations also have good corporate governance. Despite applying enterprise risk management correctly for the most part, many organisations in Malta still have not applied the COSO Framework. IMPLICATIONS/VALUE: This research adds to local literature by providing a risk governance model and providing additional insights on the current risk governance practices in Maltese organisations by also providing insights into their corporate governance and enterprise risk management practices.