Enterprise Risk Management, Self-Organization, Networking, and Financial Performance in Australia Private Procurement Contract

This thesis explores the impact of enterprise risk management, self-organization, networking, and financial performance in Australia private procurement contract. It discusses the challenges faced by businesses in procurement, the role of risk management, and the importance of communication with stakeholders. The study also examines the relationship between networking, self-organization, and financial performance. The research aims to provide insights into effective risk management strategies in procurement.

Enterprise risk management,
self-organization, networking,
and financial performance in
Australia Private procurement
contract
A thesis submitted in partial fulfilment of
the requirement for the Master of Business
(Research)
Contents
Summary:...................................................................................................................................3
Introduction:...............................................................................................................................4
Overview of research.............................................................................................................4

1.2 Research problem statement:...........................................................................................7
1.3 Justification for research..................................................................................................8
BACKGROUND..............................................................................................................11
AIMS AND OBJECTIVES..............................................................................................14
Research questions...........................................................................................................14
Research hypothesis.........................................................................................................14
1.4 Research methodology...................................................................................................15
1.5 Outline of research.........................................................................................................15
1.6 Summary of findings......................................................................................................16
1.7 Definition of key terms..................................................................................................16
1.8 Assumption, delimitation, and justification for the scope of research...........................17
1.9 Conclusion......................................................................................................................17
Literature Review:....................................................................................................................17
2.0 Introduction....................................................................................................................17
2.1 Enterprise Risk Management and Financial performance.............................................21
2.2 Enterprise risk management and self-organisation........................................................25
2.3 Enterprises risk management and networking...............................................................29
Risk Resilience.................................................................................................................30
Risk management in decision making..............................................................................31
2.4 Self-organisation and networking..................................................................................32
2.5 Networking and financial performance..........................................................................35
2.6 Research problem gap....................................................................................................38
2.7 Conclusion......................................................................................................................39
Research methodology:............................................................................................................39
Research design....................................................................................................................39
Data Collection:...................................................................................................................40
Data process and analysis:...................................................................................................40

Study Population and Sampling Size:..................................................................................41
Source of Data:.....................................................................................................................41
Ethical Consideration:..............................................................................................................42
Conclusion:..............................................................................................................................42
References................................................................................................................................44
Summary:
In recent times, many businesses are facing critical issues in procurement due to this issue
businesses are not able to grow and develop. However, the issues are related to quality, price,
etc. besides this, planning and controlling measures are effectively taken to manage risk. But
private firms can mitigate impact only to some extent. Nowadays it is required for
organizations to maintain proper communication with internal and external stakeholders. This
is because it allows gathering relevant data and info. In a procurement contract, the major risk
is supply chain management. Sometimes, ineffective supply of materials results in occurring
of high risk. In addition, risk occurs both at the supplier and firm end. Therefore, it changes
the entire context and situation of procurement. The situation also changes due because risk
effect on areas according to their degree.
CHAPTER ONE
Introduction:
Overview of research

This is the first chapter in the research study which comprises the research topic, aim,
objective, and questions. The chapter starts with the writing of an overview of the research
topic and what the research is all about and what exactly is going to be researched in the
following dissertation. This chapter consists of the background of the study as to what exactly
the research is about and how what is the structure of the whole thesis (Alexander,
Gelderblom, & Kock, 2015). This chapter narrows down the focus and defines the scope of
the research. Moreover, the section also describes the aim and objectives, with the rationale
for choosing the specific topic. The significance of this study is to provide a clear reflect why
the study is conducted and assist to gain knowledge related to the topic. Here, a discussion
related to the state of existing research on the topic is conducted and the relevance of the
research is depicted to answer the research issue in a border way. In this chapter, an overview
of the dissertation structure is presented.
In recent times, many businesses are facing critical issues in procurement and due to this,
they are not able to grow and develop. However, the issues are related to quality, price, etc.
besides this, planning and controlling measures are effectively taken to manage risk but
private firms can mitigate impact only to some extent. Nowadays it is required for
organizations to maintain proper communication with internal and external stakeholders
because it allows gathering relevant data and info. In a procurement contract, the major risk is
supply chain management. Sometimes, ineffective supply of materials results in occurring of
high risk. Therefore, it changes the entire context and situation of procurement and the
situation also changes due because risk effect areas according to its degree. Basically, in the
supply chain, there are various points or processes where at the supplier end there is no risk
but at companies end risk level is very high (Berry-Stolzle & Xu, 2016). Similarly, the risk is
at the supplier's end but not at companies end.
Risk management is the process of protecting those value-based areas. Thus, it is essential to
mitigate the impact of risk on that area so that value is aligned. This is because stakeholders
are not involved in measuring risk. However, procurement also faces the problem of risk
identification. and It is stated that 8% of procurement organizations have measured risk in the
supply chain. But they have measured it from the external point of view (Lewis, 2001) thus,
no proper measures are taken to protect risk and improve supply chain outcomes. So, to get
relevant outcomes, it is necessary to identify resources from natural risk owners. However,
only determining risk is not beneficial until clear vision, action, etc. the risks are also

occurred due to insufficient info gathered by firms from stakeholders. If businesses are
having an improper network with the suppliers, the government, and with inter departments
then there are high chances of risk. Generally, a strong network of suppliers enables
collecting relevant data. Apart from it, the firm can easily switch from one supplier to another
if the high-level risk is identified. This results in impacting their financial performance.
However, business productivity decreases as well. A network is established through self-
organization (Carnovale, Rogers, & Yeniyurt, 2019). So, by following process or methods
communication is done and data and information are shared.
Enterprise risk management (ERM) standpoint, there is a broader disconnect between
evaluating enterprise risk overall versus extending those risk factors in a cohesive manner out
to the supply chain and out to the supply base where contracts are signed that hopefully help
mitigate most supplier risks. ERM frameworks is assess to context in which it is operating
which means understanding the internal risk management environment of a firm and the
interest of the stakeholders (Sweeting, 2017).
To manage risk, private firms are using many techniques. and It has enabled in improving
processes or methods through which risk is managed. Alongside, the major area where risk
has occurred is procurement and due to it, the supply chain is impacted to a great extent. At
present time, organizations are focusing on improving their financial performance because it
benefits them in maintaining growth and development. Also, by analysing data from
stakeholders such as suppliers, investors, customers, etc. (Creswell & Poth, 2018) financial
performance is improved, and the self-organization also plays a significant role. It consists of
processor methods that are used or implemented through self-organization as well financial
performance can be improved. This change is done in the process or new methods are
implemented. It enables improving their efficacy and strengthening networking. With help of
it, the operational process is changed, and proper monitoring is done where the firm develops
a new process that supports managing activities and tasks.
The private firms are not able to maintain financial performance, it may be due to several
reasons or factors. The main reason is a high risk, and it is difficult for businesses to identify
risk and mitigate its impact. Generally, supplier management plays a vital role in the value
chain in procurement. However, the occurrence of risk in many areas is directly integrated
with finance. So, there is a decrease in firm investment and capability to grow and expand.

By installing ERM in procurement risk can be easily identified and then managed. In that
strategies are developed to deal with it. Moreover, there is proper evaluation and auditing of
risk provides insight into the type and degree of risk that can occur. They are: - Credit Risk,
it is also called Default Risk. Credit Risk is related to borrowed money and the amount of risk
involved in giving money to the borrower is financially defined as Credit Risk. If the
borrower of the money gets default in repaying the borrowed money the credit risk goes high
(Duan, Bhaumik, Palinkas, & Hoagwood, 2015) the investor suffering from high credit risk
also faces a decline in the income from loan repayment and the borrower also face a rise in
debt. The minimum credit risk always motivates the financial organization to invest more
money in the market and it gives more freedom to the financial organization for doing their
business. Market Risk also called Systematic Risk is associated with the financial market in
which financial organization conducts their operations. The level of market risk will always
drive the financial market and market risk involves market stability. The policies of the
government about the financial structure of the company create an impact on the market risk
of the financial organization. If the market is stable and the policies of the governments are
not fluctuating, and the cash flows are suitable the market risk for the financial organization
will be minimum. Liquidity Risk- It involves the cash flows in the market. If the cash flows
are appropriate in the market and the company has his resources to pay all its debt then the
liquidity risk will be not high (Etikan, Musa, & Alkassim, 2016). Liquidity risk also involves
two factors one is a market liquidity risk and the second factor known as funding liquidity
risk. If the securities are unable to sell in the market quickly due to more sellers than buyers,
this situation is called market liquidity risk and in the case of funding liquidity risk the
shortage of funds becomes the reason behind liquidity risk. Operational Risk- It arises due
to a lack of operational planning in the organization and based on the company's internal
defaults in planning, organizing, and proper utilization of the funds. Operational risk creates a
negative impact on the company's growth and sustainability. Financial resources are
minimum, and a company needs to plan optimistically about all its financial capabilities so it
can sustainably grow in the market. High operational risk will always portrait a negative
image in front of the shareholders of the company because it directly reflects the company's
internal structure especially regarding policymaking.
In procurement usually, decisions are taken at a low level and this is because the main thing
considers here is that by eliminating risk at a low level it is easy to manage it at a high level.
On other hand, risk management is considered strategic and all decisions regarding it are
taken. Here, risk management strategies are integrated with procurement.

1.2 Research problem statement:
It is necessary for the researcher to describe that why research is been undertaken. Here,
many aspects of the study are explained and examined. This section is useful to identify that
what is the aim of the study and the knowledge provided by it. The user will be able to get
insight into what can be learned from the study. Besides, makes it easy to identify what are
the main points and areas where research will focus. It also reflects on further elements
related to the topic.
The entire research is based upon enterprise risk management and through this, different
private procurement agencies have increased their scrutiny on the risk management process
and that is why the study also highlights the significance of using ERM by the companies to
manage risk. Therefore, the main reason for choosing the specific topic is that scholar have
their own interest to study on the topic and that is why, while researching on this topic, they
gain or enhance their knowledge and learn different terms related to the topic (Shatnawi,
Hanefah, & Eldaia, 2019). Further, another rationale for choosing the specific topic is such
that may be University assign the topic and that is why scholar must study this. Therefore,
this will help a researcher to learn different terms related to the topic, and therefore, the
knowledge will help to grab better future opportunities as well. In addition to this, it is also
analysed that studying the topic will help to investigate the impact of establishing a risk
management process within an organization and determine how the performance is affected
by comparing present condition to the future.
Another rationale for choosing the topic is such that scholar wants to enhance their
knowledge related to business and risk and that is why it is essential to study on this.
Moreover, enhancing current knowledge will help the researcher to use that in their near
future so that the chances of attending opportunities will be increased. Even, in this
competitive era, every firm faces issues and risks and that is why they implement different
strategies to minimize the risk and it also ensures that the financial performance is also
managed.

The topic will provide outcomes about what are different high and low-level risks for private
firms in procurement. Also, it will be able to determine the impact of each risk on
procurement contracts (Arena, Arnaboldi, & Palermo, 2017). Alongside, companies will get
an overview about what type of financial risk can occur that is market, operational, liquidity,
etc. and how risk can be managed in this. Apart from it, the study will reflect on that how
ERM can affect self-organization, networking, and financial performance. It will show that
how networking can affect financial performance and what loss can occur. Besides this, how
self-organization can also lead to a company's overall financial performance. In this many
other things included in the study that relate to the topic. The research will find out what type
of natural disaster risk are being faced by communities. Moreover, what is the role of
management in providing data and information about risk? Additionally, research will discuss
the relation between private governance and business development. It will briefly the role of
policies and procedures for private companies.
In this, it will also be described that how changing process or methods in self-
organization is beneficial. Moreover, how with help of an effective network financial
performance is improved. Usually, in procurement risk arise due to quality, price, or
suppliers. It changes many things related to the contract.
1.3 Justification for research
The research serves the purpose of informed action. The dissertation pursues to contextualize
its findings within the larger body of research. This research serves high quality to produce
knowledge that is applicable outside of the research setting. Furthermore, the results of the
study have implications for policy and future project implementation that helps to leads a
business towards success (Salloum, Jobbour, & Mercier-Suissa, 2019). Moreover, through
this researcher, scholars will also gain knowledge related to the topic and determine different
ways of managing risk as well.
Moreover, by the study on the topic, the researcher also identifies enterprise risk
management and current issues as well as changes that impact business performance as well
as gain knowledge related to sustainability as well. In this modern era, every company needs
to be more focused on the sustainability goals so that it will easily identify how the
communities risk resilience faces some disaster within the firm and how to cope up with the
issue as well. On the other side, it is also analysed that another sign of the study is to analyse
the impact of different enterprise risk management that creates a positive or negative impact

upon the business's overall performance. Further, studying the topic will help the researcher
to use some tools that help to mitigate the risk and leads a business towards success. The
study will also provide a detailed insight into how ERM is applied or followed by private
firms. Besides this, what is the relationship between ERM and self-organization that is how
risk can be managed by improving processes or methods in self-organization? Moreover, how
the change in self-organization impact ERM. Along with it, the private firms will be able to
implement processes or methods to manage risk. Furthermore, by evaluating the outcomes
companies will understand the relationship between ERM and financial performance. Then,
on basis of it proper measures and strategies are formed (Tucker, Luu, & Poulsen, 2016).
Therefore, the organization will get insight into the type of impact that occurs and in what
way financial performance is degraded. In addition to it, firms get to know what type of
decision or strategies will be formed to minimize financial performance. However, there are
many other things as well the business will benefit if from research. Furthermore, the study
will provide outcomes that how ERM is related to networking. The organization will analyse
the role and importance of the internal and external network in ERM and will find out areas
of improvement. Furthermore, in the future private firms will be able to strengthen their
network.
The other researcher will also be able to conduct a study on different components of ERM.
They can interrelate ERM with finance and investigate risk impact on the future financial
performance of the firm. In this they include ratios, share price, market value, etc. thus, it will
be easy to gather data and conduct a study. Other than this, scholars will do research on ERM
strategies used by firms in mitigating risk. So, from it, the results can be used by private
businesses to use a particular strategy in that situation. Another significance of the study is
that by interpreting outcomes different risk practices can be implemented to manage risk. The
company can identify risk and categorize it on basis of priority (Viscelli, Beasley, &
Hermanson, 2016). This will make it easy for them to mitigate risk in a specified time.
Furthermore, the results of the report can be used by public firms as well to manage risk in
their procurement. They can also utilize and implement similar strategies to manage risk and
improve financial performance. However, other country's private procurement firms can also
use the outcomes of this study. With help of it, they will be able to follow ERM ineffective
way and manage risk as well as mitigate its impact. In this way, those companies can
minimize risk impact through self-organization and improve their financial performance. It
will be easy for them to compete in the market and survive in the long term.

In the future, the scholar can conduct a study to evaluate risks in financial performance.
Besides, the relationship between networking and self-organization can be explained by
studying various variables involved in it. In addition to it, further research can be done to
analyse the degree of risk with finance. This will be useful in drawing various strategies that
can be used in mitigating its impact. However, by only gathering secondary data study it can
be interpreted about what are the things required to manage ERM. Alongside, what other
measures or techniques can be used by private firms to manage risk. Thus, it will be
beneficial for them to apply those in case of ERM failure. Furthermore, there lies a vast
number of areas where research can be conducted. Here, it is essential for the author to
identify those and relate them to the study topic. Apart from it, the significance of the
research is scholars can conduct studies on risk management strategies and what relevant or
appropriate strategies can be used in reducing risk. Moreover, strategies are categorized and
then segregated on basis of their usefulness. They can be analysed that what type of strategy
is implemented to maintain financial performance, improve networking and self-organization
(Ying, Hassan, & Ahmad, 2019). From this study, it will be easy for private as well as public
firms to get an overview of what strategy they can follow.
However, more research can be conducted on ERM. Here, authors can find out what are
different types of challenges that are faced by organizations in managing risk. Also, they can
identify the reason due to which those risks are not managed. Therefore, it will provide
insight on challenges faced and in which area. Similarly, the challenges can also be
determined in managing financial performance. Thus, it will make it easier for procurement
companies to take appropriate measures in solving that risk. But it is important for scholars to
select different sample sizes and populations and the researcher can focus on the supplier side
as well. It means by not emphasizing on firms they can find out that what type of risk occurs
on the supplier side and how they are able to manage it. So, it will be beneficial for the
organizations and suppliers to manage risk in an effective way. In addition to it, further
studies can be done on networking. Here, the role of stakeholders or internetworking in
procurement can be evaluated. Through this, variation and loopholes in networking are
figured out. However, both internal and external network and their significance are studied.
Likewise, the study can be conducted on the importance of self-organization in procurement
(Salloum, Jobbour, & Mercier-Suissa, 2019). It will be understood that how processes or
methods are changed to manage risk. Apart from it, what type of data and information is

useful in managing risk can be defined. Hence, it will provide an overview of where that data
can be used and how. Other than this, doing a study in ERM can be beneficial in gathering
data and using it in managing risk. It shows how things change and what action can be taken
to mitigate the impact of risk. So, these all are research areas wherein future studies can be
done.
BACKGROUND
Enterprise risk management is a business that includes both method and process
which is used by the firm to manage the risk and develop the best opportunities for the
company to lead it towards a further level of success. Moreover, ERM is the process that is
described as a risk-based approach to manage a business by integrating the concept of
internal control and develop the best strategic planning as well. Therefore, the current study is
also based upon the different enterprise risk management strategies used in Australian public
procurement contracts so that it will easily understand the broad spectrum of risk faced by the
firm to make sure that it is managed and well organized (Gastaldo, Rivas-Quarneti, &
Magalhaes, 2018). Thus, the dissertation's main aim is to determine the impact of establishing
a risk management process in the firm to analyse the business performance related to business
cooperation, good governance as well as promotion of safety.
It is a business strategy that provides the methods used by an organization to discern, assess,
and control any kind of hazard, operational, strategic, or financial risks as defined by the
Casualty Actuarial Society (CAS). The main aim of ERM is to fortify the capital of the
organization and plan to face any form of risk, including risks caused by accidental losses.
One of the ways of ensuring active risk management includes buying insurance like property
insurance, malpractice insurance, and liability insurance. ERM manages to identify the risks,
prioritize the risks to manage, and devise the process to the stakeholders and shareholders
who wish to understand the wide range of risks faced by complex organizations and ensure
they are appropriately managed. A risk response strategy is selected by the management for
specific risks identified and assessed, which may include: Avoidance: steer clear of the
activities arising risks, Reduction: reducing the impact associated with the risk, Alternative
Actions: determining optimal steps to mitigate risks, Share or Insure: sharing a part of the
risk, for fiscal matters, Acceptance: enduring the risk for cost-benefit decision. The focus of
ERM is not to create more bureaucracy, but to facilitate discussion on what the big risks are
(Hang, Geyer-Klingeberg, & Rathgeber, 2019).

A common risk management technique can be developed to reduce enterprise risk by
Defining scope - recognizing and prioritizing the related risks, Map-risk - determining which
risks could threaten business strategy and leak the information, developing an action plan -
creating a risk treatment plan, Automation – using AI technologies to automating manual
processes., Measuring and monitoring - establishing metrics systems to identify key control
deficiencies. Evaluating the progress of ERM and the count of decreasing risk incidents.
Experts and project managers who deploy ERM strategies focus on appraising the risks
relevant to their organization, prioritizing those risks, and making efficient decisions to
resolve those risks. The risk management plans created by them evaluate the impact of
various uncertain accidents or disasters and frame feasible responses if any of these disasters
eventuate. In an organization, every risk function potentially behaves differently in
correlating with other risk functions. Though the organizations can manage risks at times, this
variation becomes difficult to handle (Laisasikorn & Rompho, 2014). The primary goal of
ERM is to improve this capability and coordination providing an integrated picture of risk
and allowing the organization to handle risks effectively.
The current research's main aim is to describe the business policy and determine the
relationship between public governance and private business development as well. In addition
to this, Enterprise risk management analysis applicable in the corporate world that performs
the process globally as looking at the overall structure, a framework that evaluates the
management system of the organization. Further, through this method, the researcher
highlights different risk management process which must be used by the company to generate
the best results and raise the financial performance as well. Through research, it is also
analysed that companies also have managed such risk through the capital market by using
different instruments and it also deals with day-to-day operational procedures, legal and
human resources management, financial management, etc. Therefore, it relates to overall
governance and ERM is that strategy that is used to respond to selected risk and it may also
include avoidance, reduction, and alternative action to monitor internal control (Mikes, Oyon,
Lausanne, & Jeitziner, 2016).
ERM and procurement are interrelated to one another. and the common thing in both is a risk.
ERM support in managing risk that occurs in procurement. It helps in finding out those areas
where risk occurs and along with it, in procurement, there are high chances of risk. It directly
impacts a high level and leads to an effect on financial performance. However, it is important

to reduce the negative impact of risk on financial performance. It allows private firms to grow
in the industry. Risk highly impacts business efficiency and leads to ineffective measurement.
It is because future strategies and goals are developed by identifying situations. But the
market situation is unpredictable. Hence, there may occur several risks that can directly
impact financial performance. The firms must incur more expenses on reducing impact.
Besides strategies or plans developed get failed. Also, in procurement quality of the contract
is degraded. It results in rising in the cost of the contract as well.
The managers associated with risk management must deal with day-to-day obstacles in daily
work, human resource activities, legal as well as environmental risks (Palinkas, et al., 2015).
So, to cope, with this risk managers must be in streamline with business trends, technologies
otherwise any hazards in any department will lead to creating expenditure for the company,
and the company's financial performance decreases. for this manager must be ready to face
any disasters or hazards. For this operation, the department must maintain the machinery up
to date. That is time to time maintenance is required for each machine in the work.
Sometimes technology up-gradation and innovation lead to obsolete machinery, which will
lead to a financial burden on the company. So, enterprise risk management ensures the safety
against shutdowns and explosions that will suffer employees or the public in the surrounding.
In addition to this, it will create a financial crisis for the company. According to the
company's risk management strategies, investors trust and likely to invest and work with
them. In this way managing the risk well will lead to an increase in company value. Based on
the company's ERM approach legal as well as political obstacles for constructing a new plant
are fewer. Thus, the company can easily develop the market. Thus, the best ERM technique
provides a safeguard to the company against any shutdown, explosion, cyber-attack, and
disruption in the supply chain. Risk management of any enterprise increases the financial
position by maintaining the equipment because it will deliver a quality product at an
economical cost in lesser time, which will ensure the satisfaction among the company
customers and give profit to the company (Ramalho, Adams, Huggard, & Hoare, 2015).
There are different techniques to manage risk. It depends on the degree and type of risk that
what technique is suitable. They are to prevent, retain and avoid risk. usually, risk prevention
is applied to deal. It is because here measures are taken to prevent risk.
A procurement contract is those contracts that are undertaken to provide specific types of
products or services. usually, these contracts are fixed priced where cost, time, and materials
are the same. The third parties or company makes an agreement with other organizations to

supply raw materials or goods. The contracts are of different types based on business
requirements. However, it is necessary to determine the risk involved in it. The risk highly
impacts on firm’s financial performance. Besides, in contrast, there is the risk related to
change in requirement, price, etc. However, organizations are facing dilemmas in solving
risk. The risk is mitigated only to a certain level. Hence, it is affecting in a similar way.
AIMS AND OBJECTIVES
Aims:
“To investigate the impact of establishing risk management process within an organization on
the business performance sustainable development regarding the business corporation, good
governance, and promotion of safety”.
Objectives
• To analyse the making of business capture policies by the organization.
• To evaluate the role of business in building risk resilience communities in the face
of natural disasters.
• To determine the management of natural resources for contributing to sustainable
development.
• To examine the relationship between private governance and private business
development.
• To assess the promotion of innovation by the government through procurement.
• To provide recommendations for improving the existing performance of the
company.
Research questions
• When and how do business capture policy make?
• How can businesses play a role in building communities' risk resilience in the face
of natural disasters?
• How can management of natural resources such as forests, water, etc. contribute
to sustainable development?
• What is the relation between private governance and private business
development?
• How can governments promote innovations through procurement?

Research hypothesis
H1 – There is a significant relationship between ongoing monitoring activities in self-
organization and enterprise risk management.
H0 - There is no significant relationship between ongoing monitoring activities in self-
organization and enterprise risk management.
H1- There is a significant relationship between data and information and risk appetite and
tolerance.
H0- There is no significant relationship between data and information and risk appetite and
tolerance.
H1- There is a significant relationship between risk management techniques used and
improvement in financial performance.
H0- There is no significant relationship between risk management techniques used and
improvement in financial performance.
1.4 Research methodology
Research design- For the current research, the researcher has chosen descriptive research
design under conclusive research design because through this the researcher may easily
collect the best outcomes.
Data Collection- The researcher has chosen both primary and secondary sources of data. In
primary data collection method in the questionnaire is used and in secondary data collection
method such as books, articles, and newspaper, etc.
Data process and analysis- The researcher of the study has opted for SPSS analysis which
helps in gaining a wider perspective on the risk management process within the organization
on the business performance sustainable development regarding the business corporation,
good governance, and promotion of safety.
1.5 Outline of research
This section it is described the overall framework of the research. Here, it is discussed
in brief about each chapter and what is included in that. This enables the reader to understand
the entire report by getting an insight into it.
Chapter 1 Introduction – This chapter describes the overall research. Here, many elements are
included such as aims and objectives, significance, rationale, etc. It explains why the study is
been conducted.

Chapter 2 Literature review- It is the second chapter in which the researcher will analyse
secondary data from different research articles, journals, etc. Here, the topic is discussed in
depth by developing themes from objectives. The secondary data is collected and analysed
which makes it easy for users to know what the topic is about.
Chapter 3 Research methodology – This chapter will describe different types of research
methods which will be used or applied by the scholar. It will give an overview of how overall
research will be conducted and what methods are used.
Chapter 4 Findings and results – This chapter will show how primary data is collected and
interpreted. It gives a brief analysis of results obtained from data. It will include graphs,
tables, charts, etc. along with its interpretation. Here, the hypothesis is tested by interpreting
results.
Chapter 5 Discussion, conclusion, and recommendation- In this, a discussion of data is done
that is based on findings and results. The researcher will give an in-depth discussion of data
and information interpreted. Also, it includes a conclusion that is summarized by evaluating
data. Besides this, recommendations are given at last that about the report and findings of
data.
1.6 Summary of findings
It can be found that the current dissertation is also main is to describe the usage of ERM in an
organization by describing the self-organization, networking, and financial performance as
well. Further, it also focuses on risk management, current changes and issues, the company's
actual performance, and sustainable development that leads to promotes safety and leads a
business towards a further level of success.
1.7 Definition of key terms
ERM- It is a plan-based business strategy that aims to identify, assess, and prepare for any
hazards and other potentials.
Networking - the exchange of information and ideas among people
Financial performance- a measure of how well a firm can use assets and generate revenues.

Risk management- the process of identifying, assessing, and controlling threats.
Risk appetite - level of risk that an organization is willing to accept while pursuing its
objectives.
1.8 Assumption, delimitation, and justification for the scope of
research
Assumptions- The study may not evaluate and interpret outcomes related to risk management
and financial performance. Also, it may not focus on policies of risk. Besides, the strategy
may not be discussed properly.
Delimitation- Here, the study is only limited to enterprise risk management. Also, risk related
to financial, business performance, etc. is mentioned. Also, only private business is taken in
this research, and data is gathered from it. Moreover, the risk of self-organization,
networking, and financial performance is stated in the thesis.
Justification for the scope of research – The scholar will explore what is ERM, what are a risk
in self-organization, networking, and financial performance in private companies.
1.9 Conclusion
It can be summarized that a study is being conducted to examine the impact of establishing a
risk management process within the organization on business performance. For that, both
primary and secondary data collection method is used.
CHAPTER TWO
Literature Review:
It is the second chapter that provides theoretical insight into the overall research topic. In this
section, the researcher analyses secondary data taken from previous articles and journals and
writes it in the study. The data is evaluated that provides views and opinions of other authors
on ERM. Besides this, it also becomes easy for users to read and understand as well as
gaining knowledge about the research topics. This is the main chapter of the study and it is
written on basis of objectives developed and according to themes. Here, each theme can be
further divided into sub-themes. From that, it becomes easier to go through the entire chapter.

This chapter presents the literature review to cover all objectives and representing the answer
of each objective in the form of a Literature Review theme.
2.0 Introduction
It is important for businesses to identify risks so that they can be managed the risk and in
such a competitive environment, there are many challenges and risks that businesses must
face due to shifts in risk operations are affected and resources are over or underutilized.
However, advancements in different fields like technology could offer various types of tools
and techniques that can be used by the business. It is useful for managing and controlling
overall business information with the help of Enterprise resource management. Similarly, for
risk management, ERM is a tool that can be used (Mikes, Oyon, Lausanne, & Jeitziner,
2016). It evaluates the entire organization's risk and suggests ways to manage it. The tool can
be integrated with much other software also. However, managing risk properly allows
businesses in their growth. It provides enough time to take appropriate measures and
minimize the impact of risk. Furthermore, strategies are developed on basis of the degree of
risk.
According to Arena, Arnaboldi, & Palermo, (2017) enterprise risk management is a process
that is used in an organization to reduce risk regarding investment and development, a
framework that evaluates the management system of an organization. In this way, it also
identifies the overall enterprise profitability and productivity in the global world. This type of
ERM provides the management with the data or information to easily optimize the earning in
which the firm ultimately generates more values while maintaining the risk of enterprises in a
proper manner. Enterprise risk management system is providing an effective clearer language
that can transfer information about the capabilities and intentions of the management system.
In the global marketplace, ERM has been rapidly growing during past years within specific
regulators. As per response to the demand of people, more companies are implementing the
concept of ERM which is poorly integrated with the business practices under the same type
of label. Enterprise risk management also viewed the culmination to the risk explosion that
must be started in 1990. In this way, many companies have faced problems or risk-related
financial loss.

In 2004, Moeller, (2011) it has been clearly defined the ERM provides guidance in the form
of documents that were published by the organization's committee that sponsoring services.
Sometimes, the Enterprise risk management process can be affected by the directors of entity
boards and other types of strategies implemented for changing the designed patterns,
potential events. It can manage the risk to give reasonable assurance related to the
achievements of business goals and objectives.
Risk management is important for organizations because it increases the enterprise driver and
other stakeholders that always concerned about the organizational risk. This type of risk is
also including as a driver in terms of strategic decisions. It causes due to uncertainty that
occurs in the business because the risk is mainly embedded in the operations and functions of
organizations. In most cases, companies are considered the worldwide approach in the
context of risk management and enable the approach to identify the significant impact of
different types of risk in the business process, product and services, activities, stakeholders.
The approach might be implemented in the business activities so as it will generate an
effective result or outcome. It also offered an upside risk.
In 2008, it has been increased the global financial crisis that directly demonstrates the
importance of enterprise risk management. At that time. it has been published the new
standards of risk management that may include principles and guidelines of risk management,
international standards. In this way, this guideline draws the development approach and
implementation in the ERM (Enterprise Risk Management).
Apart from that for different types of companies, there is required to analyse and understand
the enterprise's risk that being taken when specifying the goals and objectives. It will require
attaining the desired level of awards and rewards. In this way, it will require an organization
to understand the overall embedded risk and its level in the business process. It is very
important for companies to recognize their own prioritize and understand the weak points.
For improving the risk management in the organization to develop a new setting that helps to
increase the efficiency and performance. Management systems have always taken the
initiative to establish their own strategy as per requirement and generate better results or
outcomes. Successful risk management will generate positive output by using quality
assurance, compliances, and enhanced decision-making. The positive results will give better

options in the context of improvement related efficiency of enterprise operations, tactics, and
efficient strategy in the organization.
Risk management initiative which can influence on the consequences of risk related
materializing, benefits of delivering regarding the strategic decision making, these are
considered as important aspects in the business growth and development. other advantages
include reduce the capital price, appropriate financial reporting, the advantage of competition
level, improve the perception level of business (Tucker, Luu, & Poulsen, 2016). The presence
of the organization in the market requires supports of the legal aspects of organizations
because it helps to enhance the political culture and environment. on the other hand, it should
involve the opinion related the enterprise risk management that how it can be implemented
the strategy to achieve objectives. According to the International organization for
standardization in 2001, there is a total of 31000 standards publish regarding Enterprise risk.
It can be used as a brief guideline to provide the answer that how to implement the risk
management process in the business. especially, this documentation is recognizing the risk in
both downsides as well as the upside. (Olson & Wu, 2017)the review finds that the overall
enterprise's risk-taking the fundamental driving force in the organization when the cost of risk
management becomes a failure and still underestimated both internally and externally. It also
includes the price in terms of business time management which helps for rectifying the
critical situation and conditions. Corporate governance always ensures that business risk to
manage, understand and communicate in a proper manner.
There are various advantages of ERM that can help organizations to identify risks, the impact
those risks would have on the organization, and ways in which they can be managed. Few
advantages of ERM are: It helps in linking growth, return and risk i.e., it helps in ensuring
that all the entities get the required to return for taking calculated risks. It also helps in
identifying risks, manage them to an acceptable level so that the growth and return objectives
of entities are met. It also helps in avoiding risk, reduce the impact of the risk, accept the risk,
or share it so that risk response decisions can be improved.
There are various advantages of ERM that can help organizations to identify risks, the impact
those risks would have on the organization, and ways in which they can be managed. Few
advantages of ERM are: It helps in linking growth, return and risk i.e., it helps in ensuring
that all the entities get the required to return for taking calculated risks. It also helps in

identifying risks, manage them to an acceptable level so that the growth and return objectives
of entities are met. It also helps in avoiding risk, reduce the impact of the risk, accept the risk,
or share it so that risk response decisions can be improved.
There are two main possibilities in which ERM have disadvantage for organizations such as
ERM takes both time and cost, so organizations need to calculate whether ERM is worth time
and cost investment or not because many times it increases the overall budget and time
duration in which project is required to be completed. ERM is one of the most important parts
of an organization which plays a vital role in the company’s leadership plan. If associated
risks are not understood well then it can lead to incorrect strategies and incorrect
implementation of such strategies which might disturb the overall organizational budget,
increase time duration, or sometimes mislead others as well.
2.1 Enterprise Risk Management and Financial performance
Enterprise Risk Management is a plan which is based upon the business strategy whose main
aim is to identify, assess, and prepare for some dangers and hazards (Bromiley, McShane,
Nair, & Rustambekov, 2015). Even many companies have been managing risk through
insurance for years, ERM includes methods as well as processes that are used by
organizations to manage the risk and get hold of different opportunities which are related to
attaining the set objectives. So, ERM is the framework mainly used to minimize risk and it
clearly defines the relationship between the financial performance such that when the chances
of risk are minimized then it affects the financial performance in a better way. As per
(Brustbauer, 2016), In this modern era, each business faces a much and more diverse
collection of hindrances and at that time, if the firm has effective ERM strategies then it will
help to overcome such situation. This crucial risk includes reputation, day-to-day operational
procedures, some legal and human resource management, financial related issues, etc.
On the other side, (Brustbauer, 2016) stated that ERM considers as a traditional approach in
which the company should focus not only on the downside of risk but the upside as well.
Moreover, risk management is an essential element of strategic management and it should be
integrated with all ongoing activities of a business. The author also states that the ERM
concept mainly includes the risk philosophy, risk culture, and risk appetite. Therefore, this
states that these are the expression of the attitude to risk in the firm and the amount of risk

that a firm is willing to take. On the contrary, (Olson & Wu, 2017) state that there is an
interrelationship between ERM and financial performance such that it creates or generates the
awareness about the risks faced by the firm and even the ability to respond to those risks in an
effective manner to increase the financial performance of the company. If the organization
has ERM then it automatically enhances the confidence to achieve the strategic objectives of
the firm and therefore, it increases the efficiency of entire operations within the working area
to meet the defined aim in the specific time.
There are different components of ERM that can be established in the working area such that
the Internal Environment. As per the view of (Grace, Leverty, Phillips, & Shimpi, 2015)
when the resources are put to work, work culture creates a huge factor that directly influences
team risk aptitude as well as their moral code of conduct. Therefore, a healthy work culture
mainly links with the aptitude of seniors, and further, it is also analysed that if the senior
management is well qualified then they provide an effective training session to their juniors
and as a result, it decreases the chances of risk within the working area. As a result, it is
clearly realized that the company's internal environment largely influenced the quality of
strategy that is used to minimize the risk. On the other hand, (Sweeting, 2017) argued that
besides monetary and resource investment, if the firm identified any risk, then it is the duty of
risk managers that they should immediately respond to risk and develop strategies to
overcome this. Therefore, it shows the interrelationship between ERM and Financial
performance such that by complying with ERM, the overall performance of the firm is
increase. Side by side, the leader should also make effective communication and share entire
information related to risk. For that, the staff must be trained properly to recognize the
potential risk, and then they should communicate the same to their leaders as well.
In addition to this, Enterprise Risk Management should also include effective monitoring and
for that (Oliva, 2016) state that the management system should be properly monitored and
modified whenever it is necessary. Generally, the risk arises at the time of maintaining the
annual report and that is why it Is essential for the company to keep evaluating and auditing
and make separate risk management wings as well because it shows the interrelationship
between ERM and financial performance. Moreover, the professionals of the company also
work with Enterprise Risk Management which focuses on how they assess the risk that is
relevant to their companies. So, using effective Enterprise Risk Management the company
also avoids some unexpected and costly plant that might result in the shutdown of the firm.

So, it is analysed that using the best Enterprise Risk Management strategies, the companies
may avoid some unwanted risk and sustain the brand image as well.
It is also analysed by (Florio & Leoni, 2017) that using Enterprise Risk Management, the
company makes better decisions, and this data also includes the status of a risk factor also
help to change the risk culture of a firm. Therefore, ERM also looks at the risk and considers
or determines the ways how to treat and exploit risk. Not only this, but the ERM also
increases competitive position and then helps to stay competitive in the market as well and as
a result, it shows the interrelationship between financial performance and ERM. It is so
because Enterprise Risk Management helps to identify risk early and track future potential
risk as well by providing a warning to the firm. The author also states that using Enterprise
Risk Management helps to increase the financial performance of the company and as a result,
it provides different growth options too. Moreover, using ERM in the working area, the
company also minimizes the operational issues, and this directly creates a positive impact
upon the business production level so that company is ready to meet the defined objectives in
a specific time.
Saeidi, (2019) stated that while running a business, the manager or the leaders faces multiple
risks, and this can only be minimized by using Enterprise Risk Management strategies in
which the system helps to describe the events which cause risk and even it also identifies
various events which further provides opportunities as well. Such that when the event is
identified then the assessment should also be emphasized because the framework places a lot
of importance on assessing the risk. Thus, it also includes the risk assessment as a component
in which risk collectively measures and further individually evaluated how they influenced
each other. (Berry-Stolzle & Xu, 2016) argued that Enterprise Risk Management not only
determines the risk, but it identifies different opportunities and facilitated improved decision
making, planning, and structured the understanding of opportunities as well as the threat of an
enterprise.
Besides this, Enterprise Risk Management is considered as a cost centre and if the firm
measures the total cost of risk before it implements ERM then the company must identify the
significant risk at the time of executing the company's strategy. For instance, there is a
situation, in which the CRO using the Enterprise Risk Management process identifies the
supply chain risk in a food company that is not disclosed (Enterprise Risk Management,

2017). At that time, there is a risk flown under the radar of the due- diligence team and as a
result, the flooding creates uncertainty about the quality as well as quantity of raw material.
Hence, this situation damages the reputation of the company, and at that time, using
Enterprise Risk Management the company may come up with this situation.
Thus, on the other side, (Lundqvist & Vilhelmsson, 2018) stated that there are some
companies who may not feel the need to measure the value of ERM and it is so because it
makes good business sense. But in today's modern era, every company uses advanced tools
and analytically oriented environments that further measure the value that helps to take a
business towards success. Overall, using Enterprise Risk Management in the working area
will help to maintain the financial performance of the company and the company hardly
publish any comprehensive information related to their existing risk management, but they
use the ERM system to overcome different challenges. The study also observed that the
financial performance of ERM, its impact is also measured by excess stock market returns,
company's cost and revenue efficiency that includes ROA and as well as cash flow volatility
too.
According to Laisasikorn, (2014) said that It is a wide concept on the risk management
decision for the organization so that it states that the complete markets require the relevant
financial decision and they do not impact the moral values of stakeholders in the
organization. It is the better way to increase the wealth of stakeholders and always assets the
organization to increase profitability in the global marketplace. There are some important
concepts identified the providing the inspiration for businesses to take care through risk-
related management, agency cost, taxes, and many more.
As per (Florio & Leoni, 2017) it has been stated that there are multiples assumptions exist,
but it does not influence the financial decision of the organization. the important decision is
simply distributing the income to indifferent investors. They also act in the global market to
accept all conditions and terms in a proper manner.
According to (Gatzert & Martin, 2015) Enterprise risk management is considered the
important part of the financial policy which identifies the implications through findings or
ERM strategy implement in the organization. Sometimes, the position of investors' wealth
always unaffected by applying the risk management operations on the different parts of the

business. As per Modigliani and Miller's theories, it can be determined that risk management
is purely related to the financial transaction which has a significance in the corporate world to
identify the risk. This theory is derived the positive business risk management by
implementing appropriate assumptions (Ahmeti & Prenaj, 2015).
(Shatnawi, Hanefah, & Eldaia, 2019) performance of an organization can be identified by
using financial measurement because it will generate the overall estimation in the specified
numbers. The financial measure is considered in the form of enterprise efficiency and
performance that still essential for measurement entity, usually in the current economic
culture or environment. Many enterprises are targeting the rate of profit, solvency, and
liquidity as measures of the financial wealth of the organization. Performance can be
measured for identifying the profit rate of the organization from the different factors such as
capital, labour, and management. It is mainly focused on the relational between the profit
level expenses and revenue of the business.
(Oliva, 2016) argues that stakeholder’s interests as the main components of business policy
which are particularly based on consumer trust, high technology services in the organization.
it also able to continue offering the services in the future development and give a contribution
to the value of the company. In the context of financial condition, it is being highly sensitive
to the expected price/ cost. However, enterprises' risk management practices must be
increased to minimize the price therefore it will increase the value of the business in the
global marketplace.
(Kopia, Just, Geldmacher, & Bubian, 2017) it can be predicting the overall risk by
management practices, which determined by the accepted practices that implement within the
market. Furthermore, it is essential to link the security aspects in the purchase’s assets, which
implies the risk management that can be important in the contracts which improve the
business performance and efficiency.
2.2 Enterprise risk management and self-organisation
As per the view of (Savini, 2017), One of the most important factors on which every
organization needs to focus is to identify and manage risk. A running business comes across
many kinds of risks, some of them might be hazardous and some might not be hazardous and
if these risks are not taken care of then they can cause some serious damage to the

organization. Identification, preparation, and management of risk are most of the time costly
as well as time-consuming. There are various kinds of risk management techniques used by
organizations for risk management that help them to prepare for the risk regardless of the size
of the business. Risk management helps in the identification, evaluation, analysis, and
prioritization of risk so that its impact on the organization and its resources can be reduced.
(Savini, 2017) further explains that most organizations use enterprise risk management
technique in which risk is defined as a possible circumstance or event which is likely to occur
and have a negative impact on the enterprise and can influence their overall working. The
impact of the risk can be on everything such as on the existence of the organization, their
resources, products, capitals, services, customers, market, or environment in which they
operate, and many more. Enterprise risk management is a technique that helps in evaluating
risk level, risk management, the impact of risk on the organization. Each organization has a
pre-formulated plan for every kind of risk which helps the enterprises to deal with their
possible consequences.
According to the view of (Presemann, 2015) For risk management or getting prepared for the
risk it is important too, first of all, identify the type of risk enterprise needs to deal with i.e. if
the risk becomes a reality it is the first and the foremost step to identify the type of risk an
organization is dealing with so that its impact on business can be reduced, both time and cost
can be saved other than this negative impact on the customers can also be reduced. Business
risks can be identified using various kinds of methods, but each identified method relies on a
specific analysis of business activity so that all the challenges in dealing with the risk can be
identified. Each of the identified risks can be managed either by accepting it, transferring it,
reducing it or by eliminating it. (Presemann, 2015) further elaborates that, there are various
kinds of risks that can be identified by the businesses to be taken care of such as physical
risks like building risks, location risks, human risks, technology risks, strategic risks, etc.
Each of these risks is further of various other types and the impact of each risk on business is
completely different i.e., the impact of these identified risks can be both severe and with the
least risk. After identification of risk, risk assessment comes into the picture i.e., all the
identified types of risks are prioritized according to their probability of occurrence. For
example, it has a very little chance of occurrence, has some changes of occurring, has a small
chance of occurring, or has high chances of occurrence. All the risks are managed according
to their chances or likelihood of occurrence so that all kinds of damages can be taken care of
and further damages can be reduced with a reduction of both time and cost.

In addition to this (Jaderi, Ibrahim, Nikoo, & Nikoo, 2019) elaborates that, after the
assessment of risk is done, its insurance is done management of risk is focused on. There are
many kinds of risks that can be insured due to which its impact and likelihood on the business
can be decreased. Many kinds of risks are automatically managed if proper insurance is done
but some of the risks are of extremely high priority and cannot be insured so it becomes
extremely important for organizations to manage those risks with proper planning and
organization of data. After this again analysis is done where all the risks that cannot be
managed are categorized into management and risk prevention strategy. Risk prevention is
one of the most important parts to be focused on in risk management techniques. Risk
prevention helps in reducing the impact of the risk on the organizations so that if further
management is required then it can be taken care of.
According to (Savini, 2017) Risk at any level of an organization can affect their current
operations, projects, functions, activities, or projects. Without clear objectives and purposes,
it is impossible to identify events due to which risk can occur, and if those events are not
identified then risk management strategies cannot be developed. So, it can be said that Risk
identification needs a clear understanding of objectives and strategies as well as modification
required at every level of the organization. So before identifying risk or understanding
techniques used for identifying risk, there are various factors that should be noted such as
mostly combination of techniques should be used for identification of risk because there are
many types of risks that require a particular method to be chosen for identification, each used
technique should involve discussions so that individual advice and concerns can also be
identified. (Savini, 2017) further explains that there are various techniques that can be used
for risk identification such as brainstorming, interviews, self-assessments, SWOT analysis,
risk questionnaires, scenarios analysis, using various technologies, risk surveys, workshops,
and many more. After identification of risk using enterprise risk management risk portfolio is
made where risks are categorized into four groups that are financial risks, strategic risks,
hazardous risks, and operational risks.
As per the view of (Jaderi, Ibrahim, Nikoo, & Nikoo, 2019) Enterprise risk management is
directly/indirectly linked to self-organization where the spontaneous arrangement of risks is
done in a purposeful manner under proper conditions without external help i.e., the risk is
identified and managed within the organization itself without outsiders helps. ERM helps in

self-organizing the risk where it is not avoided but is faced so that greater financial stability
can be achieved, and further economic or non-economic losses can be avoided. ERM is one
of the most appropriate technologies that is mostly used by organizations to face any kind of
risk that is within the boundaries of the organization. There are two main key concepts of
ERM that help in self-organization that are: to manage risk within the boundaries of the
organization and to report risk upwards within the organization to an appropriate level so that
it can be attended properly, and proper required actions can be taken. The process used in
ERM is not particularly different from other types of risk management applications but has a
wide process that helps in taking care of risks at the level of the organization. Successful risk
management will generate positive output by using quality assurance, compliances, and
enhanced decision-making. The positive results will give better options in the context of
improvement related efficiency of enterprise operations, tactics, and efficient strategy in the
organization.
As the view of (Tucker, Luu, & Poulsen, 2016) demonstrates that ERM follows various kinds
of risk standards such as ISO standards, OGC risk management guidelines, etc. these
standards are used in risk processes that are implemented at different levels of the
organizations. It also helps in building a clear understanding of what is required to be
implemented at each level within the organization so that it can be managed manner. Each
risk management process within the ERM technique has a particular way in which risk
management is processed within an enterprise. Basic steps involved in risk management are
risk process initiation, risk identification, qualitative risk assessment, quantitative risk
assessment, risk response planning, risk response identification, risk review, risk reporting,
and lessons learned for risk review.
Managing risks across boundaries.
As cited by (Dobson, et al., 2019) There are various other processes that help in managing
risks across boundaries as well where self-organization techniques are not used. Whenever
there is a need to manage risk across boundaries multileveled approach to risk management
does not work as it not effective across the organization. It requires risks to be communicated
between various levels so that it can be ensured that risk is addressed in a proper manner and
appropriate methods are being used for its management. There are three major sources
through which risks can occur i.e., at the lower intermediate and tactical level, higher
intermediate levels, and higher strategic level. Based on these sources level at which risk is

going to be managed is decided such as risks from the above level are managed at just below
level, risks from the same level are managed at the same level and risks from below are
addressed and managed at higher or just upper level. It is extremely important for the
organization to focus on the source or way of communication through which risk will be
transferred to another level to be managed. It also helps the organization to understand the
manner and level up to which impact, threats, and opportunities associated with the risks are
communicated, identified, and managed. This helps the organization to translate risks in
terms of qualitative and quantitative measurable terms based on risk characteristics. It is
important for organizations to focus because the impact of risk also depends upon the type of
business and the market in which they operate which affects the outcome or impact of risk
based on the nature of the risk.
2.3 Enterprises risk management and networking
According to the view of (Agarwal & Virine , 2017) networking between company’s
managers and internal-external stakeholders. Most of the organizations depend upon their
network for most of the work, as many organizations work depend upon their business
network so that they can work on their products and services through their business network.
Enterprise risk management is an important technique that is used by many organizations
especially by those who are completely dependent upon their business network. Other than
ERM, organizations have two other most important processes whose main function is to
control uncertainty. The first is the information technology and risk management and the
second is operational planning. These two processes are dependent upon the correct
functioning of the organization’s network. Implementation of IT risk management requires a
specific person or group of people who are trained in the security management area
specifically and can understand all the technologies used within an organization. Other than it
is also preferred that the person should also have prior knowledge of working in a large
communication company or a company with a large network.
According to (Cohen , Krishnamoorthy , & Wright, 2017) information technology risk
management requires companies to track, monitor, and manage all kinds of security risks
associated with their business network. Each organization that connects to the internet need to
consider all kinds of risks associated with their business. As it has already been discussed that
each business has some unexpected risk of harmful events that can cause some damage to the
company as well as to their network. IT risk management allows businesses to prepare

themselves as their network to get prepared for unexpected risks so that the extra cost of
managing and minimizing risk can be reduced.
Risk management plan implementation helps in reducing potential risks associated with an
organization’s network. furthers explains that many times to expand one’s own business
many organizations focus on expanding their network with other organizations which
increases the risk associated with their network. Both internal and external business processes
are required to be focused on so that risk associated with the business network and their
impact can be identified and taken care of such that it does not impact the overall business of
the organization. There are various kinds of benefits that are associated with risk
management, such as it helps in creating a secure and safe working environment for the
organizations, their employees, and customer’s increases business operation stability
decreases legal liabilities, provide protection from events that are important to both business
environment and the company, helps in protecting all the people or stakeholders associated
with the business and the potential harm it can cause to the business, helps in establishing
organization’s insurance in order to secure unnecessary expenditures.
Risk Resilience
As elaborated by (Sekerci & Pagach, 2019) risk resilience is a kind of risk management
approach that focuses on the way organizations or business communities deal with surprises,
changes, and disturbances and the way businesses think about the sustainable future of their
organization in the environment of growing uncertainties and risk. In other words, risk
resilience can be defined as a practical set of tools and approaches that can be used by
organizations to understand the way in which uncertainties and risks can be dealt with. Risk
resilience is an integrated concept that allows multiple risks, stress, shocks as well as their
impacts on the ecosystem, organization, and all the vulnerable people involved in the context
of development programming. There are two most important stages that are needed to be
considered to become more risk resilient, such as First is to identify emerging risks in which
all businesses are required to have deep knowledge and understanding of all kinds of major
risks to which they are vulnerable. The second is to manage risks more efficiently where
businesses need to evaluate the effectiveness of all current risk management strategies, they
use so that they can ensure robustness, the relativity of all the changing needs of regulators of
their organization.

In addition to this (Mikes, Oyon, Lausanne, & Jeitziner, 2016) elaborates that risk
management and resilience are important for every business today as it helps in protecting
and avoiding future cost related to business. Once an enterprise is clear about the risk that is
required to be faced by them, then based on those risks’ organizations can develop a risk
management strategy so that those risks can be managed effectively and efficiently. It is also
said that risk management approaches should be included across all business operations and
work ethics. This can help organizations to manage their financial concerns in an appropriate
manner. An organization that faces risks quite frequently can articulate risk apatite and then
define its risk strategies accordingly. This can also help the organizations in better decision-
making, greater agility, and a sharp competitive edge. This further helps an organization with
familiarity, similarity, discussion issues that are needed to be discussed for the management
of risk.
Risk management in decision making.
As per the view of (Viscelli, Beasley, & Hermanson, 2016) risk management plays a vital
role in decision making as it helps the organization to select the best alternative, rank
alternatives for a specific risk management goal. For this, all the risks are identified and
prioritized according to their impact on the organization. After prioritizing risks only
significant and important risks are taken further to be managed. It also helps in protecting and
enhancing stakeholder value by managing unnecessary risks that can impact an
organization’s achievement of business objectives. Risk management in decision-making
involves conflicting factors and alternatives, as it involves a lot of intangibles that can affect
decision making. Many times, risk managers need to make decisions that have high risks
associated with them based on unlimited information, but they are provided with limited
information and time to make decisions and organize data. Many times, uncertainty and
instability in the business environment also affect risk management and decision-making
associated with it. Whenever risk managers need to take and decision associated with the
business network then, the risk associated with the business increases as instability and
uncertainty associated with the network is high. So, it can be said that the complexity of risk
management associated with decision-making related to business networks is high. There are
multiple criteria based on which such decisions are taken so that risk associated with the
network can be reduced. Many times, changes in an organization’s policies are also made so

that complexity associated with the network can be reduced which would eventually help in
reducing the risk associated with it. The decision is to be taken by evaluating certain things
and criteria. Here, management plays a vital role as any incorrect decision can hamper the
process. The risk factor can highly affect business strategy or goals that are developed for
minimizing risk.
In addition to this further elaborated by (Arena, Arnaboldi, & Palermo, 2017) organizational
decision-making faces various kinds of uncertainties that affect decision-makers choice
which further leads to disaster or benefits for the organization. If there is any kind of problem
associated with decision-making, then it can lead to undesirable outcomes or loss. As
decision-making has various kinds of risks associated with it, so it is needed to be done in an
accurate manner so that organizational management is doe disturbed. There are several
methods that can help in reducing risks associated with decision making, some of them are
quantitative in nature and some of them are qualitative in nature. All these methods are used
in risk management in decision-making. These methods also help in identifying uncertain
events and the achievement of organizational objectives. This increases the necessity of risk
management in decision making and decreases uncertain events and unnecessary outcomes
probability.
2.4 Self-organisation and networking
It has been evaluated by (Presemann, 2015) that organization consists of specific process or
methods which enable in performing operations in an effective way. There is a system that is
made for a specific purpose and performs a task in that manner. The way of the system can be
changed as per requirements. Its scope is wide as for each system there are different
components. For a similar system, components may be the same, but the condition differs in
which they work. The procurement used in that is arranged in various ways. In terms of
business, it means to attain a goal by using the most efficient path and with help of available
skills, knowledge, and resources. Here, various approaches are being used to make
continuous changes in that path. So, through this, it becomes easy to complete tasks in less
time. Moreover, there is a broad range of processes that are used. Self-organization contains
policies and practices that are followed in process or method. Policies set some clear
guidelines which enable to proceed in a defined way. Moreover, practices vary when there is

any change in networking as both are interrelated. They both act as the base of networking in
inter-firm relationships and outside as well.
Every business possesses its own self-organization which enables them to perform tasks
using a specified path. It is important for them to work the basis on the path so that the
resources are utilized efficiently. This path depends on the nature of the business and what
process they are following. In this resources and knowledge is also taken into consideration.
Thus, by combining all these a specified path is developed. According to (Hancock &
Mueller, 2010), by using that path there is an efficient use of skills and knowledge. In
addition to it, on basis of path network is established, it provides a brief description of what
process or method is being used b stakeholders. However, any change in path forces to
modification network as well and the change in path is made for improvements. In this also
risks are identified that allow maximizing use of the path. Thus, it increases the efficiency of
self-organization. Along with it, networking plays a vital role here. This can be identified that
when the process is modified some connections of the network are either excluded or
included. Therefore, it brings some modifications to the path as well. It is determined that
changes are required in self-organization and networking to eliminate risk. This has been
useful to maintain consistency in operations. However, policies and practices are modified
when risk is identified, and changes are made. Therefore, changes in practices enforce in the
designing of new processes or methods.
In research done by (Savini, 2017) the process or methods are continuously changed due to
chances of risk. The ERM system identifies risk and its degree. So, it is calculated that how
much impact risk has on self-organization. In a similar way, networking is modified which as
well led to enhancing communication. New technology is installed which provides a different
way of utilizing resources, skills, and knowledge. The outcome can also be in favour of
networking as practices are applied.
However, according to (Carnovale, Rogers, & Yeniyurt, 2019), networking refers to the way
in which stakeholders are connected to the organization. It also includes the process through
which the method is followed, and information is shared and, in this policy, procedures,
resources, knowledge, etc. are defined and connected. Nowadays, businesses are framing
things through self-organization. They consist of specific process, practices, and policies
which are integrated together. So, it highly focuses on things that are required in establishing

a relation between self-organization and networking. It is being evaluated that certain
standards are considered in reviewing things. Hence, standards are replaced as well to
redefine the process. Moreover, it is identified that self-organization and networking are
integrated. Any change in self-organization also changes networking. The managers are
connected in such a manner that each manager can easily interact with one another.
Furthermore, it also requires changing the external entities of the network. The inter-firm
network is based on set criteria and procedures. In that, each department must follow a
specific method or path to finish their task. For example- if businesses must share any
information with the government, they should follow the method. Therefore, it requires a
strong network it. Other than this, for everything, there is some set method in business which
is followed. Alongside, both self-organization and networking are dependent on each other. It
means that whenever a change occurs in one to them the other must be changed as well.
However, it becomes necessary to view things and analyse them to make things easy.
As per the view of (Sekerci & Pagach, 2019) the risk must be analysed so that it can be
eliminated. Risk can affect the entire process through which managers and stakeholders are
connected. It depends on the degree of risk that how much it can impact. Also, for each
process risk and its degree varies. It requires proper risk management to evaluate overall
networking. On basis of risk, changes are done in practices, and policies are formed. There
are various other processes that help in managing risks across boundaries as well where self-
organization techniques are not used. Whenever there is a need to manage risk across
boundaries multileveled approach to risk management does not work as it not effective across
the organization. It requires risks to be communicated between various levels so that it can be
ensured that risk is addressed in a proper manner and appropriate methods are being used for
its management. Business needs to focus on risk to apply policies and both inter ad outer firm
relation in networking remains same.
(Sweeting, 2017) said that there are many other things related to both concepts. It is either
inter-firm relation or some other factors which force to make improvements in practices.
Businesses usually emphasize forming effective policies to maintain the flow of things.
Doing risk management allows firms to analyse future changes that can affect practices.
Hence, there is continuous monitoring of practices and certain improvements are made. It
must be linked with the process or methods that are currently being followed. In present times
due to advancement in technology, several factors arise which are affecting networking. New

practices are implemented which has strengthened inter-firm relationships. Furthermore,
policies related to sustainability are also taken into consideration within practices. As
identified in both private and private business self-organization and networking is different. It
varies to a great extent as both separate methods and processes are followed. This requires
proper monitoring of the process to find out that how the change will enhance the processor
to what extent it benefits. There is a need to measure outcomes of self-organization so
accordingly changes are made. However, the main concept in networking is to incorporate
with the government. It enables in sharing of information and communication constantly.
Moreover, it provides knowledge about factors and resources that can be utilized. Through it,
change in policies or ways of utilization of resources is determined as well.
In view of (Agarwal & Virine , 2017) top management is responsible for developing self-
organization and networking. They decide that how managers will be connected to
stakeholders, which stakeholder will be included in the network, etc. So, it entirely depends
on top management to take decisions and make changes in practices. Also, they monitor
overall practices and policies to find out whether any changes are required or not and if yes in
what areas it is needed. Along with it, methods are evaluated to find out what will be its
outcome. Then, consequently, one specific method is chosen. Similarly, a network is
established by management to define inner and outer firm relations. It is done by separating
resources and skills.
2.5 Networking and financial performance
According to Weldon (2018) the conceptual terms of networking in business for improving
the coordination between the supply chain. It may include the components: link, flows,
actors, and mechanism. It is individually participants make coordinate with other people and
share the information. The flow indicates the exchange of information where the overall
mechanism of the network is rules of interaction employed.
There are various types of benefits on business for increasing the wealth of employment in
the organization. it can be accelerating the knowledge of information regarding technology
upgrades which directly influences business efficiency and performance. As per (Ying,
Hassan, & Ahmad, 2019) it is required for an organization to design an effective network of
stakeholders and managers that will help for improving performance. This type of structure

has mainly defined the patterns of employees which creating strong coordination between
them. Network literature has been considered the embedded risk of the organization when
they will create an external relationship with another company. Sometimes, it is a very crucial
part to connect internal stakeholders with managers. (Hang, Geyer-Klingeberg, & Rathgeber,
2019) stated that it has emphasized the significance of the external capabilities and resources
to the company through the network. The performance of the organization is directly
dependent on the network because it helps to increase the size of resources for business
growth and development. Since the network influence the flow of communication which it
clearly measures the overall performance of the organization. network governance is an
important element in terms of coordination which help for creating a relationship with the
multiple manager and stakeholder within networks. It is based on the trust, support, power
that will manage the sustainability in legal aspects.
For every organization, its financial performance predicts market value. It means that how
much profits are earned and what are the assets and liabilities of the business. Also, it is
important to maintain financial performance to survive for long-term growth. But to do so
there must be a strong inter-firm relationship that will support growth. However, if there is a
lack of inter-relationship the operations may be affected. It is essential to make pair of
divisions and connect with one another to develop relationships. A rise in revenue will lead to
gaining a competitive advantage. There is quick and frequent interaction among actors in the
network. This provides them a clear overview of the present situation. Hence, in case of any
critical circumstances accordingly, measures are taken. Apart from that for different types of
companies, there is required to analyse and understand the enterprise's risk that being taken
when specifying the goals and objectives. It will require attaining the desired level of awards
and rewards. In this way, it will require an organization to understand the overall embedded
risk and its level in the business process. It is very important for companies to recognize their
own prioritize and understand the weak points.
In the view of (Weldon, 2017) a diversified network is necessary for a firm as it allows
ineffective communication between external stakeholders and managers. In a network, there
are many elements included which is makes it easy to interact with one another. Basically,
networking also consists of expanding into different departments and in business operation. It
connects internal and external stakeholders of the firm. Moreover, a centralized network
makes it simple to share data and interacting with managers.

As stated by (Emerson, 2015), in an organization networking plays an important role. This is
because it enables in setting a strong communication through which data and information are
shared. Moreover, there is a systematic way of the network which makes it easy to get things
done. However, all departments are interconnected in the network which makes it easy to
perform operations. Also, with recent technological advancement firm is finding out ways to
improve their networking. It is because financial performance is directly linked to
networking. The result obtained is a rise in the growth and revenue of the firm. With help of
the network, it becomes easy to analyse and study the intensity of the relationship between
stakeholders and managers. Also, it reflects that how quickly the flow of communication
exists and what obstacles are faced in it. When there is strong networking in business it
automatically leads to effective exchange and flow of data. Apart from it, using advanced
tools and applications it makes it allows divisions to improve their productivity. With help of
different types of software, there is the ease in operation. Alongside it, networking identifies
weak areas and improves them. Thus, loopholes are solved with help of technology. Through
this, the efficiency of operation increases. It results in generating more revenue and there is
an increase in production.
It has been elucidated by (Brudern, Berger, Caspar, Maillart, & Michel, 2016) there
are many things considered in networking as it is useful in increasing communication within
and outside organizations. A diversified network includes many types of relations. It is also
spread in a wide range that creates a positive impact on business growth. However,
networking acts as a broker as it provides access to gather and share data. It forms an inter-
firm relationship by which it is easy to work together and in an effective way. So, if there is
any inconsistency with help of the network it can be overcome.
According to (Choi, Ye, Zhao, & Luo, 2016), there is a direct relationship between
networking and financial performance. It can be said that network support in analysing the
overall situation and immediately passing on data to one another. With help of this, it
becomes easy to identify issues and solve them. In that managers and experts can also
participate by receiving messages. Networking needs to be internal and external as well. If an
organization is having a strong internal network set up but there is a weak external network,
then it will impact its outer connection. They will not be able to gather sufficient data and in
case of a critical situation, ineffective decisions are taken. Furthermore, growth opportunities
are also affected as it restricts firms to find out and evaluate what they must do due to lack of
information. Similarly, having a resilient external network and weak inter-firm relations

highly impact firm operations. Besides getting external support the goals and objectives are
not attained. Hence, it impacts growth and development.
In a study done by (Dobson, et al., 2019) if departments are effectively connected with one
another there is appropriate communication between them. They also work together through
integration and can attain goals. However, in diversified network issues are identified quickly
as it includes different components in it. However, strong networking makes it easy to
determine risk instantly and allowing proper actions to be taken. Therefore, it reduces the
impact on operation, and it remains consistent. In a similar way, internal and external risks
are identified which as well makes it easy to recognize from where risk arises. Moreover, if
the risk is identified in networking, then advanced technology is used to enhance it. So, it
brings a change in way of communication and inter-firm relation. Thus, it eases interaction
within the department. Usually, a network is established to work together by developing
strategies. It is used in enterprise risk management where a systematic structure is followed.
Henceforth, it can be concluded that if risks are minimized or effectively managed its impact
automatically decreased. The units can improve their weak areas with more productivity.
Thus, if network connection risk is solved then in a similar way in the diversified network
well risk can be minimized and managed. So, increasing efficiency in one area contributes to
generating revenue. Likewise, in overall networking if improvements are done it results in
increased financial performance. Other than this, the use of advanced technology also
enhances staff productivity and allows for effective utilization of resources. It also leads to
more investment in technology. In networking, processes or methods of operation are
connected as well. This gives insight into key operational procedures, strategies, goals, etc.,
and how they are interlinked.
As stated by (Caseiro & Coelho, 2019) an example can be taken here that if a firm is stuck in
a critical situation and there is a lack of inter-firm relation but strong external network. In this
case, networking can help in gathering data from outside businesses. It means that if there is a
delay in production then suppliers or vendors can be used. It states the use of networking
through which financial performance is raised. This reflects the relation of networking with
finance. Besides, when there is ineffective interaction within inter-firm then operational
efficiency is hampered. This also impacts outcomes that are to be attained. When business
networking is highly spread there is a strong connection between departments. So, there is
frequent interaction within them, and risks are managed properly. If associated risks are not
understood well then it can lead to incorrect strategies and incorrect implementation of such

strategies which might disturb the overall organizational budget, increase time duration, or
sometimes mislead others as well.
There are several challenges faced as well in networking. With the frequent change in
technique or way of interacting operations are hampered. This entire process is modified
which forces to begin from start. It makes it difficult to again start things. Due to this, tasks
are not completed on time. In addition, inter-firm relation is to be established again. So,
sometimes information shared is incomplete. The next operation remains stuck until complete
info is not received.
2.6 Research problem gap
Here, it has been analysed that private contractors are not able to find out the risk which
occurs in doing research. Besides, financial, and self-organization performance is not
effective and there exit gap in managing risk in it. Furthermore, networking done is not
efficient and it is leading to impacting on financial performance.
2.7 Conclusion
It can be concluded that risk management plays a vital role in decision making as it helps the
organization to select the best alternative, rank alternatives for a specific risk management
goal. For this, all the risks are identified and prioritized according to their impact on the
organization. After prioritizing risks only significant and important risks are taken further to
be managed.
CHAPTER TWO or THREE ???
Research methodology:
Research Methodology mainly involves the specific techniques which are adopted in the
research process to collect as well as assemble to evaluate data. Moreover, it also defines
different tools which are used to gather information related to this research. Thus, research
methodology also helps to gain familiarity and attain new insight related to a specific topic.
Therefore, it is necessary for the researcher to design a methodology for the chosen problem

area so that it will help to determine the better and best method for the research to solve the
problem (Walliman, 2011)
So, its main aim is to give the work plan of research and gain knowledge on how to use
relevant tools and techniques to complete the research in a better way. Hence, from these, it
clearly reflects that by using research methodology, a researcher determines scientific and
inductive thinking and promotes the development of logical habits of thinking which may be
used in their organization as well. Not only this, but the research methodology also assists a
researcher to aid in business decision making which will be helpful in their future as well
(Quinlan, Babin, Carr, & Griffin, 2019).
Research design
It is the set of methods and procedures which are used to collect and determine the measures
of variables related to the problem and even it also refers to the overall strategy which a
researcher may choose to integrate with different components of the study in a logical way.
Through research design, the researcher makes sure that whatever evidence is collected by
the researcher will help to address the research problem in a logical manner (Meyers, Gamst,
& Guarina, 2016). Therefore, it clearly reflects that it directly influences the reliability of
results attained and thus also provides a solid base for the entire research.
For the current research, the researcher has chosen descriptive research design under
conclusive research design because through this the researcher may easily collect the best
outcomes.
Data Collection:
It is the method through which the researcher collects and gathers the information related to
targeted variables in a well and established system that also helps to answer some questions
as well as evaluate the outcomes too. Through data collection, the researcher also makes a
prediction about the future possibilities as well as trends. Therefore, at the time of gathering
information, the researcher must have to identify that the type of data that is used will help to
answer the research question and the method relies on the research design as well. In this
current dissertation, the researcher also uses different sources of data that helps to meet the
defined aim and objectives in a better way (Roller & Lavrakas, 2015). On the other side, if
the researcher finds out the accurate data collection, then it will help to maintain the integrity

of the research and it also leads to reduce the chances of errors as well. In addition to this, the
formal data collection process also makes sure that it ensures all the collected data are
gathered in a defined and accurate way through this, they make sure that it provides a
baseline from which it measures and provides ways to improve the same.
The researcher has chosen both primary and secondary sources of data. In primary data
collection method in the questionnaire is used and in secondary data collection method such
as books, articles, and newspapers, etc.
Data process and analysis:
The researcher of the study has opted for SPSS analysis which helps in gaining a wider
perspective on the risk management process within the organization on the business
performance sustainable development regarding the business corporation, good governance,
and promotion of safety.
Study Population and Sampling Size:
The sample population can only be selected when it is valuable and reliable and can represent
the study in an efficient manner (Emerson, 2015). So, to select a sampling size first and the
foremost thing a researcher should do is to select a sample population from which sample
size will be selected and for this, it is important to know the reason behind choosing the
sample population for a study or research.
For this research which is entitled “Enterprise risk management, self-organization,
networking and financial performance in Australia private procurement contracts” the study
target population chosen for this research paper is people working in the private procurement
sector of Australia. Further from this chosen sample population, the sample frame will be all
the contractors working in this procurement sector. The sample size chosen from this sample
frame is 250 contractors that work in this sector. This sector has been chosen as the target
population as this complete case study is based on networking, financial performance,
enterprise risk management in Australia’s private procurement sector. People working in this
sector have much more knowledge about this sector thus it can be said that the private
procurement sector is the correct chosen population. Within this sector as well contractors are
chosen because they know all pros and cons of this sector, they have a wide knowledge of

financial and network performance of this sector, they also know what are the enterprise risk
that are associated with this sector and in what ways it can be managed (Duan, Bhaumik,
Palinkas, & Hoagwood, 2015).
Source of Data:
The first source of data collection is the primary source of collection of data. The primary
source refers to the data collected directly from the respondent and this is also known as the
first-hand data. This is the reason that this data is collected for the first time and is also used
in the research for the first time. This type of data contains raw information and then this data
is analysed and evaluated by the researcher in accordance with the aim of the research. This
is because of the reason that the researcher collects the data according to his requirements of
the research aim and then uses the data collected in accordance with the research.
Primary data can be collected in many ways. These ways are like direct or personal
interviews, surveys, information collected through observations or results of any experiment,
and many other different sources. This type of method is very helpful for the researcher
because of the reason that this method provides the latest and correct information. it is so
because the researcher himself goes and collects the data and there is no chance of any
misinterpretation of the data. Also, this type of source of data is relevant because of the
reason that it includes the first- hand information which has not been used in any of the
earlier research. This first-hand data ensures that the research is totally based on fresh data
collected directly from the source only (Thomson & Mcleod, 2015).
Ethical Consideration:
The researcher of the study carries out the research study in an ethical and reliable manner by
effectively collecting the information from valid sources. The data collected are properly
cited which in turn helps in stating that all the information collected is valid and the data used
are not manipulated in any way (Glesne, 2016). This tool is very useful to carry out the
research in a reliable and ethical manner. Researchers have effectively utilized all the
resources of the company in an ethical and relevant manner to accomplish the set objectives
of the research. The researcher focuses on adhering to all the rules and regulations which

helps in carrying out the research in an efficient and systematic manner. The researcher of the
study has maintained privacy and anonymity while carrying out the study.
The research is carried out by determining the potential consequence of the study by
effectively carrying out the study with ethical conduct. The researcher of the study adheres to
the protection of the rights and ethical standards to prevent falsification of the data or breach
of data (Roberts, 2015).
Conclusion:
It has been summarized that risk is one of the most important aspects which is required to be
focused on by the organization as it can affect the organization in many ways. It can affect
the overall financial performance of an organization, the strength of networking (both internal
and external) can also be affected because of any kind of risk because of this risk becomes a
much more important factor to be focused on so that their overall revenue, employee’s
performance, profitability, etc. are not affected. Due to this risk management becomes an
important focus area of the organization through which they can easily enhance the overall
quality of their operations or functions. Enterprise risk management plays a vital role within
an organization that helps them in the management or elimination of any kind of expected,
unexpected or unwanted risk associated with any project, function, or operation of an
organization. It has been analysed that it is important for organizations to form a policy
through which they can focus on their risk management strategies. These policies make it
much easier to deal with any kind of risk including natural disasters and even helps them to
deal with the consequences of the risk or natural disaster. These policies also help them to
develop a risk management committee and focus on risk management strategies that can help
them to manage their resources so that they can enhance the sustainability of their products
and services. It has also been analysed that organizations need to focus on their business and
public governance so that they can bring stability within their business. These factors help the
organization in reducing chances of risk to occur within an organization and enhance their
overall business and networking within the organization. As per the data analysis, it has been
concluded that enterprise risk management helps an organization to enhance or improve its
business quality and services. ERM plays a vital role within organizations especially private
firms as it helps them to reduce chances of errors and increases their product or service
quality in many ways.

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