Influence of Family Culture on Enterprise Risk Management in Brazilian Companies

Influência da Cultura Familiar no Gerenciamento de Risco Empresarial em Empresas Brasileiras

ABSTRACT

Context:

family involvement creates specific goals that include family interests and values, and is used to pursue the family’s vision, creating effective corporate governance and risk management practices.

Objective:

our objective is to evaluate the relationship between family influence and enterprise risk management in Brazilian family businesses.

Method:

data from 142 family businesses was analyzed using descriptive statistics and structural equation modeling. The construct of enterprise risk management comprised: identification, evaluation, response, and communication. Family influence was captured by power, experience, and culture.

Results:

the results broaden the understanding that, among the three family dimensions investigated, culture is the one that better explains risk management practices.

Conclusions:

we concluded that the higher the level of family culture, the higher the level of attention to enterprise risk management.

Keywords:
family business; F-PEC model; enterprise risk management; Brazilian businesses