System Engineering and Productivity

System Engineering and Productivity

The Relationship Between the Use of ERM and the Performance of Firms Operating in the Automotive Industry

Authors
Sayyed Mohammad Hossein Hosseini 1
Sayyed Abdolreza Hosseini 2
Seyyed Mohammad Hamed Hosseini 3
Sayyed Ahmad Hosseini 4
1 Corresponding author: Ph.D. Student, Department of Management, Faculty of Humanities, Allameh Tabatabaei University, Tehran, Iran
2 Associate Professor, Department of Management, Faculty of Humanities, University of Eyvanekey, Eyvanekey, Iran
3 Researcher, Department of Management, Faculty of Humanities, Imam Hossein University, Tehran, Iran
4 Assistant Professor, Department of Management, Faculty of Humanities, University of Eyvanekey, Eyvanekey, Iran
10.22034/sep.2022.243395
Abstract
The attitude towards the concept of risk management has undergone many structural changes in recent years; in such a way that the perspective on risk has changed from a detail-oriented approach to a systematic and holistic approach. The aim of this research is to examine the relationship between the use of risk management techniques and the efficiency of organizations working in the automotive industry, which has been accepted by the Securities and Exchange Organization for more than a year. In this model, the model presented by the Kosovo Institute has been used to quantify the level of use of enterprise risk management techniques. Also, all the factors used in this model are financial and accounting factors that can be obtained from the information of the Stock Exchange Organization. Finally, the Pearson correlation test has been used to examine the relationship between the independent variable (the level of use of enterprise risk management techniques) and the dependent variable (firm performance) after standardizing the data. The results of this research indicate that the use of enterprise risk management techniques has a significant positive relationship with the performance of the organization. Also, in examining the secondary hypotheses, only reporting risk management has no significant relationship with organizational performance.
Keywords
Comprehensive enterprise risk management
Profitability
Strategic risk management
Operational risk
Reporting risk management

Copyright ©, Sayyed Mohammad Hossein Hosseini, Sayyed Abdolreza Hosseini, Seyyed Mohammad Hamed Hosseini, Sayyed Ahmad Hosseini

 

License

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System Engineering and Productivity
Volume 1, Issue 1 - Serial Number 1
Serial No. 1, Winter Quarterly
Winter 2022
Pages 57-72

  • Receive Date 26 December 2021
  • Revise Date 04 January 2022
  • Accept Date 07 January 2022
  • First Publish Date 07 January 2022
  • Publish Date 20 February 2022