Roles in Governing Risks of State Enterprise Directors and Their Antecedents

Abstract

This research reports actual roles in governing risks of state enterprise directors and antecedents of their roles. Based on Grounded Theory, this study is a qualitative research, integrating In-Depth Interview, Focus Group Discussion, and Observation, through Case Study Method, conducting in a training program for 34 potential directors of state enterprises. The analysis with Triangulation Method is employed for the study.

The study finds that the directors present standard roles, including identifying acceptable risk scope, understanding facing risks of their organization and identifying mechanism in managing risks appropriately, and considering risks in every significant decision. Moreover, they present three additional roles: connecting between management and shareholders or original affiliation, foreseeing potential risks and warning management to prepare for risk plan, and not acting over management. For antecedents of these roles, there are five factors: business management knowledge, direct experience, network, updated information, and risk sensitivity.