The Effectiveness of Electronic Risk Management System (ERMS): A Study in Malaysian Higher Learning Institution

Abstract

The risk management process has been identified as a mechanism to help organizations proactively manage and monitor the risk associated with the organization’s strategic objectives. Nevertheless, implementation of the risk management process in Universiti Teknologi MARA (UiTM), Malaysia, has become an issue as it has been highlighted that there is ineffective communication among all parties involved in the process. The finding shows that the existing risk management system causes a delay in action, it is tedious, costly, and leads to less monitoring. The purposes of this study are to identify problems in the risk management process practiced by Universiti Teknologi MARA (UiTM) in Malaysia and to compare the effectiveness of two systems. A new electronic risk management system was implemented after identifying problems in the current system. In order to make a comparison, data were collected from 95 respondents, consisting of risk management coordinators, and unit heads of faculties or departments. The results showed that the problems of the existing system are that it is not user-friendly, it is complicated to use, and time-consuming for actions to be taken. A paired-sample T-test was used for the data analysis. The results showed that there was a significant difference between the current system and the new proposed system in terms of perceived usefulness, perceived ease of use, trust, personal initiatives and characteristics, context, and system effectiveness.