Implementation of enterprise risk management as a tool for improving corporate governance within the public sector

Abstract

This purpose of the research is to investigate the relationship between the implementation of an Enterprise Risk Management (ERM) and corporate governance within the public sector. Furthermore, the study focused on the role of internal audit in ERM implementation as well as the relationship between ERM and risk communication. Questionnaires designed to collect data were e-mailed to risk managers; internal auditors and senior managers. The survey confirmed a positive association between the implementation of an ERM framework and corporate governance as well as risk communication. The majority of respondents further confirmed that corporate governance concerns were the main driving force behind the implementation followed by the impact of HIV/AIDS on their respective organisations. Of those surveyed 38% confirmed that their ERM process is embedded and they have also created the position of chief risk officer or similar. However, it is important to note that the role of internal audit in ERM implementation is not fully integrated.