A STUDY ON ENTERPRISE RISK MANAGEMENT AND ORGANIZATIONAL PERFORMANCE: DEVELOPER’S PERSPECTIVE

The housing property sector is among those industries exposed to many predictable and unpredictable risks that may have a great impact on the performance of the organization. Enterprise Risk Management (ERM) has been identified as an organized and systematic way of managing risk throughout an organization and recent research results have shown ERM implementation has positive significance on the companies' financial and non-financial performance. However, little research has been done to measure the performance of ERM studies, especially in Malaysia which has made potential users reluctant to use ERM. This paper presents a critical review of the Enterprise Risk Management in the construction industry, with a special focus on the performance of the organization in Malaysian housing property sector. The strengths and weakness of the existing structures are investigated and it suggests a firm groundwork for an in-depth future study to gain detail insights on how ERM actually works in practise in Malaysian organizations to provide a better basis for decisionmaking at strategic level, tactical and operational levels of potential risk profiles.