Factors Affecting Risk Management in Industrial Companies in Jordan

Nadia Abu Kwaik, Rateb Sweis, Baraa Allan () and Ghaleb Sweis
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Nadia Abu Kwaik: Business Management Department, The University of Jordan, Amman P.O. Box 11942, Jordan
Rateb Sweis: Business Management Department, The University of Jordan, Amman P.O. Box 11942, Jordan
Baraa Allan: Business Management Department, The University of Jordan, Amman P.O. Box 11942, Jordan
Ghaleb Sweis: Civil Engineering Department, The University of Jordan, Amman P.O. Box 11942, Jordan

Administrative Sciences, 2023, vol. 13, issue 5, 1-28

Abstract: This study aims to identify and rank the critical factors affecting risk management from the perspective of top and Lower Management in Jordanian industrial companies. Based on a rigorous literature review, critical factors affecting risk management are factors related to (1) flexibility and adaptation in the economic environment; (2) company characteristics; (3) external audit quality; (4) government rules and regulations; (5) top management and the board of directors; (6) organizational structure; (7) internal audit effectiveness; (8) trust; (9) human resources efficiency and training (10); communications (11); information technology (12); and the company’s culture. Quantitative research methods were used. A questionnaire was developed and distributed to a random sample of senior managers of industrial companies in Jordan. Kendall and Mann–Whitney tests, RII, and EFA were used to analyze the acquired data. The results show that all discussed factors have an effect on risk management, and there is no difference between top and Lower Management’s opinions regarding the ranking of the importance of those factors on risk management. This study provides an original perspective on the concept of risk management and the factors that impact it. These findings have important implications for Jordanian industrial companies’ decision makers. Companies should apply the results to their strategies and policies to reduce risks.

Keywords: risk management; industrial companies; performance; top and Lower Management; factors affecting risk management (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2023
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