Enterprise Risk Management Analysis- Case Study of a Petrochemical Company in Qatar (original) (raw)
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This study is based on the importance of enterprise risk management systems in the organization. Enterprise risk management is a tool that helps organizations to identify those areas which possess potential risks and on how to mitigate those risks. The objective of this paper is to investigate the importance of the ERM system to the firms' achievement of financial and economic goals. The study focused on four independent variables which are controlling risk, the role of the board of directors, the role of the management, and the size of the organization while the dependent variable is the performance of the firm. Using the quantitative approach, data were collected from 3 organizations namely KPMG Taseer Hadi, Deloitte Pakistan, and a bank known as Islamic Bank, the Bank Islami Private Limited. Purposive sampling was employed to take a 100-sample size from different departments. Key outcomes revealed that the controlling risk, the role of the board of directors, and the size of the organization significantly influenced the performance of the firms while there is no significant impact on the role of management on the firm's performance. Based on these findings, it is highly recommended to implement the ERM system as it will help in achieving the long-term economic and financial goals of the corporation.
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In this paper we are presenting risk management in petroleum and petrochemical Only the risk manager who is capable of understanding these complex interaction will be able to lead an organization towards a safer and more profitable future. Some previous modern safety research has shown that the interaction between human technical and organizational factor determine the performance of a company only in term of quality cost and delivery time but also in term of safety. The petroleum and petrochemical industry's need safety organization to be the first responsible for any accident accrue in the industry which it can be called safety organization of chemical plants (SOCP).The (SOCP) has to do all the investigation for the industry to make the industry working on safety without any problem which can be supported by the government and allow the organization to provide safety license for all the chemical plants. Despite how sophisticated technical solution and risk mitigation measure h...
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Based in previous experiences and knowing the environments where the businesses are developing their activities, it is urgent to identify the risks of their activities in future. In this paper we will clarify the risk in businesses and their impact in the enterprises; this is applicable for small, medium and large enterprises. Every activity has to be rolled and every step in business management is exposed to the risks of every kind. This has to be identified and quantified by their role as threat, uncertainty, loss, that will bring the enterprises to the unlikely situation in the future. Critical challenges for enterprise managements is to determine how much risk the entity is prepared to and does accept as it strives to create value. This report will better enable them to meet this challenge. The target of this paper is to define enterprise risk management, their objective, list the risks and give the model for management of the risks in the business and in the conclusion to synth...
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This study empirically investigated the ERM Implementation model and proposed framework to identify and manage risks in Oil and Gas Sector in Malaysia. The study examined the role of ERM framework implementation in improving business performance by utilizing Economic Value Added as a measurement tool. The study also provides insights to the Oil and Gas Sector to gain higher profit returns, reduce cost of capital, and improve shareholders value. Moreover, it contributes significantly in the field of Enterprise risk management in Malaysia. The identification and management of risk is significant to organizations in managing risks efficiently. Expectations of stakeholders of the organization are high from executives and board of directors in managing the risk effectively. Linear regression analysis is utilized in analyzing the data obtained from the data collection performed for this paper. Purposive sampling has been employed in order to select the firms that are operating in Malaysian oil and gas sector. Primary data has been utilized to collect data with the help of structured questions and interview techniques that involve semi structured questions. The results of the regression analysis conducted for in this study suggested that a significant and positive relationship between Enterprise Risk Management with operational risk; market risk; political risk; health, safety and environmental risk; and, also business performance.