Risk Management Culture as Mediator to the Relationship of Risk Management Tool with Public Sector Performance in UAE Public Sector

Abstract

Risk management plays a vital role on the performance of many organizations including UAE organization. The main issue that affects the performance of public sector in UAE is the used of outdated risk management tools, this tremendously affects the performance of public sector in UAE. This paper presents a study on developing a structural relationship of causal effect of five risk management tools which are Document Review; SWOT Analysis; Root-Cause Analysis; Interview; Delphi Technique with Public Service Performance and Risk Management Culture as a mediator.  The modelling process was conducted using AMOS-SEM software.  The results from the modelling found that all the measurement models and structural model have achieved the model fitness criteria. While for hypothesis testing for direct relationship, it was found that the five risk management tools together with Risk Management Culture constructs has explained 63% variation in Public Sector Performance construct. The other direct relationship found that the five risk management tools constructs has explained 48% variation in RMC. For indirect relationship, it was found that Risk Management Culture has no mediation effect on the relationship between the five risk management tools of exogenous constructs and Public Sector Performance of endogenous construct.