Developing an Enterprise Risk Management Policy to Strengthen Corporate Governance in an SME: A Case Study of Company T7 Aquaculture Sdn. Bhd.

Lim, Wen Wei (2026) Developing an Enterprise Risk Management Policy to Strengthen Corporate Governance in an SME: A Case Study of Company T7 Aquaculture Sdn. Bhd. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

This project examines the development of an Enterprise Risk Management (ERM) policy for T7 Aquaculture, a small and medium-sized enterprise (SME) operating in the Malaysian aquaculture industry. The study was conducted in response to the organisation’s reliance on informal and experience-based risk management practices, which resulted in limited documentation, centralised decision-making, and inconsistent risk monitoring processes. Given the increasing operational, financial, and environmental uncertainties faced by aquaculture businesses, the project aims to strengthen governance structures and improve risk management practices through the development of a structured and practical ERM framework. A qualitative case study approach was adopted, utilising semi-structured interviews, organisational observations, and document analysis to evaluate the company’s existing governance and risk management practices. The study proposed a tailored ERM policy integrating selected principles from the COSO ERM 2017 framework and ISO 31000. The proposed framework introduces formal risk ownership, structured reporting procedures, risk appetite thresholds, Key Risk Indicators (KRIs), and simplified risk assessment tools suitable for an SME environment. The recommendations also emphasise cost-efficient implementation through low-cost digitalisation, hybrid training approaches, bilingual communication support, and continuous policy review mechanisms. The proposed ERM framework is expected to enhance accountability, transparency, and decision-making quality while supporting more proactive and systematic risk management practices. Furthermore, the study provides practical insights into how established ERM frameworks can be adapted to suit the resource constraints and operational realities of SMEs within the aquaculture industry. Overall, the project demonstrates that effective ERM implementation in SMEs does not necessarily require complex or costly systems, but rather a structured, scalable, and context-appropriate approach to governance and risk management.