Critical success factors for risk management systems

Despite the existence of extensive literature regarding risk management, there still seems to be lack of knowledge in the identification of critical success factors (CSFs) in this area. In this research, grounded theory is implemented to identify CSFs in risk management systems (RMS). Factor analysis and one-sample t-tests are then used to refine and rank the CSFs on the basis of the results of a survey which has been conducted among risk management practitioners in various types of Swedish corporations. CSFs are defined from three different perspectives: (1) the factors that have influence on the inclination and readiness of a corporation for implementing RMS; (2) The factors that are important during the design and implementation of RMS in a corporation and can significantly affect the success of RMS design and implementation; and (3) the factors that are crucially important to successfully run, maintain, and administrate RMS after the closure of the project of RMS design and implementation. A case study of a largely successful RMS is presented and discussed in terms of these key factors. This systematic approach toward understanding the taxonomy of the success dimension in RMS is important for re-enforcing effective risk management practices.