Effect of Employees’ Understanding on Risk Management Process on Risk Management: A Case Study in a Non-profit Organisation

Abstract

Purpose: This study examines the effect of employees’ understanding of risk management process on knowledge on risk management in a non-profit organisation. Specifically, this study examines the effect of employees’ understanding of risk identification, risk assessment and analysis and, risk control and monitoring on their knowledge on risk management.

Design/Methodology/Approach: This study used questionnaire survey on 80 employees of various levels in a non-profit organisation.

Findings: This study shows that the most of the employees felt that they have a poor knowledge on risk management. The poor knowledge on risk management is attributed by the all three determinants in this study namely, understanding risk identification, risk assessment and analysis and, risk control and monitoring process on knowledge on risk management.

Practical Implications: The findings provide indication that non-profit organisations need to provide awareness programs to their employees in increasing their knowledge on risk management. The findings of this study is essential to the managements to ensure that their employees are well informed and understand risk management and subsequently, take necessary control to reduce risks.

Originality/Value: This study provides further understanding on the importance of understanding risk management process on performance.