knowledge management and strongenterprisestrong risk management.pdfVIP

Knowledge Management and Enterprise Risk Management Implementation in Financial Services Eduardo Rodriguez PhD Candidate Aston Business School, Export Development Canada EDC Ottawa Canada Principal IQAnalytics Canada eduardo.rodriguez@ John S. Edwards Professor of O.R. and Systems, Operations Information Management Group, Aston Business School Aston University Birmingham, U.K. j.s.edwards@aston.ac.uk Abstract This paper starts from the viewpoint that enterprise risk management is a specific application of knowledge in order to control deviations from strategic objectives, shareholders’ values and stakeholders’ relationships. This study is looking for insights into how the application of knowledge management processes can improve the implementation of enterprise risk management. This article presents the preliminary results of a survey on this topic carried out in the financial services sector, extending a previous pilot study that was in retail banking only. Five hypotheses about the relationship of knowledge management variables to the perceived value of ERM implementation were considered. The survey results show that the two people-related variables, perceived quality of communication among groups and perceived quality of knowledge sharing were positively associated with the perceived value of ERM implementation. However, the results did not support a positive association for the three variables more related to technology, namely network capacity for connecting people (which was marginally significant), risk management information system functionality and perceived integration of the information systems. Perceived quality of communication among groups appeared to be clearly the most significant of these five factors in affecting the perceived value of ERM implementation. Key words: Knowledge Management, Enterprise