had been named as Company A, B, and C to preserve their confidentiality. Company
A is a national automobile manufacturer that is involved in automobile design,
manufacturing, marketing, and sales. It was established in 1983 and was listed in
Kuala Lumpur Stock Exchange in 1992. The company is a subsidiary of a leading
automotive manufacturer. The interview session was conducted with the head of risk
management department which had more than 20 years of working experience and
was responsible for the risk management activities at the group level.
Company B is a construction company that is involved in the field of engineering,
quarrying, township, and property development. It was established in 1995 and was
listed in the Kuala Lumpur Stock Exchange in 1996. The interview session was
conducted with the head of internal audit department which had more than 12 years
of working experience in the field of audit and risk management. Moreover, Company C is one of the biggest producers of Malaysian crude palm oil, and it is the
world’s third largest plantation operator. It was established in 2007 and was listed in
the Kuala Lumpur Stock Exchange in 2012. The company’s core business activity is
cultivation of palm oil and other plantation crops including soybean, canola, oleo
chemicals, and sugar products in Malaysia and few other countries. The interview
session was conducted with the head of risk management department which had
more than 24 years of working experience in risk management.
12.4.2 Interview Results
12.4.2.1 Factors Determining the Success of SRM Implementation
The study found that senior management leadership, board oversights, and compliance with rules and regulations are the factors driving the successful SRM implementation in all three companies. Moreover, elements such as effective
communication between the senior management and board, investing in training,
in-depth knowledge at the management and board level, and employing incentive
schemes that promote sound risk management seemed to be linked to SRM implementation. The cases supported that the corporate boards had mandated the senior
management to focus on sustainability issues because these issues were sought after
by the investors to see the sustainability of the organisation. Furthermore, the
top-down commitment and support at the different organisational levels in the
companies studied provided a direction to balance risk and reward for successful
SRM implementation. In this study, it was ascertained that compliance with rules
and regulations was a critical factor that was the main driver in implementing the
SRM programme. This is because all of the companies studied faced much stricter
regulations from the regulatory bodies due to their nature of business. Company A
indicated that compliance with the applicable laws and regulations was essential to
avoid the risk of non-compliance. As an automobile manufacturer, Company A has a
responsibility to ensure that their products meet the product quality and safety
requirements in accordance with the rules and regulations to avoid reputational
12 Meeting the Stakeholder Needs and Sustaining Business Through. . .
201
A is a national automobile manufacturer that is involved in automobile design,
manufacturing, marketing, and sales. It was established in 1983 and was listed in
Kuala Lumpur Stock Exchange in 1992. The company is a subsidiary of a leading
automotive manufacturer. The interview session was conducted with the head of risk
management department which had more than 20 years of working experience and
was responsible for the risk management activities at the group level.
Company B is a construction company that is involved in the field of engineering,
quarrying, township, and property development. It was established in 1995 and was
listed in the Kuala Lumpur Stock Exchange in 1996. The interview session was
conducted with the head of internal audit department which had more than 12 years
of working experience in the field of audit and risk management. Moreover, Company C is one of the biggest producers of Malaysian crude palm oil, and it is the
world’s third largest plantation operator. It was established in 2007 and was listed in
the Kuala Lumpur Stock Exchange in 2012. The company’s core business activity is
cultivation of palm oil and other plantation crops including soybean, canola, oleo
chemicals, and sugar products in Malaysia and few other countries. The interview
session was conducted with the head of risk management department which had
more than 24 years of working experience in risk management.
12.4.2 Interview Results
12.4.2.1 Factors Determining the Success of SRM Implementation
The study found that senior management leadership, board oversights, and compliance with rules and regulations are the factors driving the successful SRM implementation in all three companies. Moreover, elements such as effective
communication between the senior management and board, investing in training,
in-depth knowledge at the management and board level, and employing incentive
schemes that promote sound risk management seemed to be linked to SRM implementation. The cases supported that the corporate boards had mandated the senior
management to focus on sustainability issues because these issues were sought after
by the investors to see the sustainability of the organisation. Furthermore, the
top-down commitment and support at the different organisational levels in the
companies studied provided a direction to balance risk and reward for successful
SRM implementation. In this study, it was ascertained that compliance with rules
and regulations was a critical factor that was the main driver in implementing the
SRM programme. This is because all of the companies studied faced much stricter
regulations from the regulatory bodies due to their nature of business. Company A
indicated that compliance with the applicable laws and regulations was essential to
avoid the risk of non-compliance. As an automobile manufacturer, Company A has a
responsibility to ensure that their products meet the product quality and safety
requirements in accordance with the rules and regulations to avoid reputational
12 Meeting the Stakeholder Needs and Sustaining Business Through. . .
201