An Impact on Management Performance by Risk Management System and Risk Management Factor

Abstract

For the continuous growth of firms, the contributions of effective risk management system are required. This research analyzes the impact on the firm`s performance related to risk management structure which includes the risk management system, risk management activity and risk management competency. In this research, the structural equation model considering the variable which contains enterprise risk management system, risk management activity and risk management competency was suggested. Also risk management organization and management procedures are identified as in enterprise risk management system. The implementation activity and control activity were the factors related in risk management activity. And risk management competency can be described as the response level of managing risk in outside and inside the firms` environment. Finally this model was analysed empirically for 112 firms in Korea using SPSS 18.0 and Amos 16.0. As the results, the suggested hypothesis were adopted. So as to manage risk performance for their firms, the development of systematic Risk Management Framework is important for their risk management activity and risk management competency. Ultimately, we can conclude that the focusing to the systematic risk management approach could be effective on the firm`s risk management performance.