THE INFLUENCE OF LEADERSHIP STYLE AND ORGANIZATIONAL CULTURE IN THE IMPLEMENTATION OF RISK MANAGEMENT

Abstract

The impact of the global financial crisis has highlighted the importance of risk management. The role of risk management was also associated with changes in the business environment. The strategy process is divided into two steps, namely the formulation and implementation. Risk management carried out in the strategy formulation process as a project to identify opportunities and risks in accordance with the company's strategy. Implementation of Enterprise Risk Management (ERM), which can effectively help the organization achieve its goals, and lead to the creation of value for the organization. Risk management is an activity which integrates recognition of risk, risk assessment, developing strategies to manage and mitigate risk using managerial resources. From previous research, organizational culture is identified as an important key in contextual factors for the success of the company's risk management. Identifying the individual leader's style is central to evaluating the quality of leadership and effectiveness, especially for organizational goals and manage the risk in the company. The purpose of this study is to propose a conceptual framework of leadership styles, organizational culture and risk management. This study will be discussed at one of the state-owned insurance company with quantitative methods conducted through a survey of middle management and employees. The results of this study will contribute to the company to determine the influence of leadership style and organizational culture adopted by the company for the implementation of risk management.

Keywords:  leadership style, organizational culture, risk management.