Evaluation of enterprise risk management culture at lesotho highlands development authority
Molelekoa, Tseko Isaac
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A culture of Enterprise Risk Management (ERM) at Lesotho Highlands Development Authority (LHDA) is impacted by risk-behaviour factors, which are risk governance leadership and strategy, communication and people, accountability and staff involvement, risk competence and learning, the risk management process, performance management and decision making. The ability to develop a strong risk culture at LHDA helps the organisation to manage risks and opportunities and accomplish its strategic goals and objectives. A quantitative research method was used to gather data by means of closed-ended questionnaires. One hundred and twenty-seven (127) employees of the targeted 190 responded to the questionnaire, resulting in a response rate of 67%. Descriptive and inferential statistics were computed from the data collected and analysed in order to derive a meaningful conclusion. The overall factors / findings that negatively influence risk culture at LHDA were lack of a good attitude towards receiving and handling bad news, lack of reward for staff escalating risk issues, risk management not being an agenda item for monthly branch meetings, lack of influence by CRPM for board decisions and LHDA not adapting to regulatory and environmental changes. The research helped to evaluate the ERM Culture, and the recommendations were proposed based on recommended best practices that can be adopted to improve the ERM culture at LHDA. Periodic risk cultural awareness and monitoring, holding employees accountable for failing to manage their risks, periodic review of risk culture maturity and development of LHDA ERM culture framework were documented as some of the mitigation strategies that might bring about a positive change at LHDA.