Impact of Enterprise Risk Management on Internal Controls of Non-Governmental Organisations in Zimbabwe

International Journal of Research and Innovation in Applied Science (IJRIAS) | Volume VI, Issue VI, June 2021|ISSN 2454-6194

Impact of Enterprise Risk Management on Internal Controls of Non-Governmental Organisations in Zimbabwe

Blessed Mveku*, Tanaka.T.T. Mutero, Munyaradzi Tagwireyi and Mufaro Dzingirai
Midlands State University, Zimbabwe

Abstract : The study sought to examine the impact of enterprise risk management on internal controls of non-governmental organisations in Zimbabwe. The study objectives were to establish whether there is a relationship between enterprise risk management and safeguarding assets of NGO’S, to determine whether ERM adoption have an impact on timely preparation of financial statements, to assess whether ERM has an effect on the prevention of fraud in NGO’S and determining whether ERM has an effect on completeness and accuracy of financial reports. Literature on this study focused on the enterprise risk management and the objectives on internal control systems which included safeguarding assets, timely preparation of financial statements, completeness and accuracy of financial reports. Other researches that looked at enterprise risk management were also reviewed. The study used explanatory research design and the study sample size was 132 participants, which included finance officials, risk officers, internal audit, and top management from NGOs in the Midlands province, specifically Gokwe, Chirumhanzu, Zvishavane, Binga, and Mberengwa. The primary data was analyzed using SPSS version 24 and STATA 13. According to the conclusions of the study, there is a strong positive association between enterprise risk management and the safeguarding of NGOs’ assets, and enterprise risk management has an impact on the completeness and accuracy of financial reporting. The study recommended that NGOs should begin implementing controls to guarantee that assets are deployed for their intended objectives and are not prone to misuse or theft; NGOs should also begin preventing and detecting fraud and other unlawful actions as their organizations become more complex; NGOs must begin by making the financial statements thorough and accurate so that the information provided is reliable to all stakeholders, and they must also begin by meeting their legal duties of timely submission of accounts and correct information contained in the financial statements.

Keywords – Enterprise Risk Management, Internal Controls,

I.INTRODUCTION

The early 2000s corporate scandals that resulted in the downfall of companies like Enron and WorldCom, as well as the global financial crisis, forced authorities to focus more on risk management and internal controls. Enterprise risk management (ERM) aims to manage all risks, including operational and strategic risks, as well as their coordinated efforts across the entire organization rather than simply a single function or specialty. In the recent past, non-

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