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Research Paper | Risk Management | Vietnam | Volume 12 Issue 7, July 2023

Organizational Culture, Board of Management Commitment, and Effectiveness of Enterprise Risk Management: A Case Study of Commercial Banks in the Southeast of Vietnam

Phong Vo Tan | Anh Vo Mai Duc

Abstract: Enterprise Risk Management (ERM) is a comprehensive risk management (RM) approach for organizations. To date, ERM has quickly become the best practice of high-risk institutions like banks. The objective of this study was to develop the knowledge base and empirically examine the impact of organizational culture (ORC) on the effectiveness of ERM through the mediating role of management board commitment (MCO). The research model is a higher order model. The measurement model of the concept of ORC is a reflective-reflective model. Measurement model of ERM effectiveness is a reflective-formative model. Data were collected using a survey questionnaire. Subjects surveyed are managers and employees at functional departments related to ERM in joint-stock commercial banks in the South East region, Vietnam (SEV). The research results show that the factors affecting ORC are leadership (LDS), organizational structure (OST), the nature of the business (IND), the human resource management (HRM) practices, and customers and partners (PRT) have a direct and indirect impact through the commitment of MCO to the effectiveness of ERM.

Keywords: Enterprise Risk Management, Organisational Culture, Commitment of Management Board

Edition: Volume 12 Issue 7, July 2023,

Pages: 709 - 721