Attitudes regarding new enterprise risk and control regulations by the active population of the Geneva area : Cahier de recherche

Catenazzo, Giuseppe ; Fragnière, Emmanuel

Nowadays, professional bodies as well as public authorities are setting up new regulations and standards in order to deploy risk management approaches in the non-financial industries. For instance, Switzerland has recently introduced a new regulation on Internal control that forces most SMEs to implement an ICS (Internal Control System). However, introducing or dealing with new risk control... Plus

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    Summary
    Nowadays, professional bodies as well as public authorities are setting up new regulations and standards in order to deploy risk management approaches in the non-financial industries. For instance, Switzerland has recently introduced a new regulation on Internal control that forces most SMEs to implement an ICS (Internal Control System). However, introducing or dealing with new risk control regulations might not bring the desired effect to the organisation: logistical and psychological barriers might indeed affect its proper deployment. It is well known that regulations are effective when each individual understands, accepts and attempts to comply with it. To deal with these issues, we have conducted a survey research from October to December 2007 to measure the perception of Geneva population regarding the main aspects of risk management within the organisations they work for. In particular, we attempt to answer to the following questions: what are the main risks at your workplace? And within your organisation? What do you think about internal audit missions? What would you do if risks occurred within your organisation? 417 people have answered to a questionnaire created by LEM (Laboratoire d’Études de Marché), a Geneva Haute École de Gestion research laboratory. Among results, we observe that poor management and infrastructure, poor performance and fraud detection are perceived as the main risk management issues. Moreover people associate an internal control procedure mainly with a performance and/or financial control. We also discover that an internal and confidential whistle-blowing system would not be well accepted in Geneva. These and other related topics (poor work atmosphere, fault at work…) have been analysed, research hypotheses have been verified on the basis of non-parametrical tests. Among others, our results highlight that a well-balanced and practical approach when implementing an ICS is important to avoid counterproductive resistance.