Managing Financial Risk and Its Interaction with Enterprise Risk Management

2011 ◽  
pp. 321-335 ◽  
Author(s):  
Daniel A. Rogers
2021 ◽  
Vol 10 (2) ◽  
pp. 70
Author(s):  
Stephen A. Ojeka ◽  
Alex Adeboye ◽  
Olajide Dahunsi

There has been a huge and deluge of risk threatening industries at an unequalled magnitude in recent times. As such, the board of directors and senior executives are increasingly expected to manage their various organizations' risk portfolios, affecting their financial performance. This has led to the assigning of the risk assessment role to the audit committee. The board of directors and its audit committee play an essential function in Enterprise Risk Management (ERM) by building up the right condition or tone-at-the-top. Given the board's responsibilities for representing the interests of shareholders, it plays a vital role in overseeing management's approach to ERM. This study examined the relationship between audit committee characteristics and risk management of some selected listed firms in a developing country like Nigeria. The study used secondary data to describe the dependent variable (financial risk decomposed into credit risk and liquidity risk) and the explanatory variables (decomposed into audit committee accounting expertise, audit committee meetings, audit committee independence and audit committee gender). The study used pair sample t-test, student t-test, Pearson Moment Correlation and random panel data estimator for twenty (20) selected listed firms for 2012-2016. Findings indicate that there is a negative between audit committee accounting expertise and financial risk. This revealed that Accounting Expertise in Audit Committees are likely to involve in activities and practices to curb financial risk. In addition, the Audit committee meeting indicates a negative relationship with credit risk. Audit committee gender and audit committee independence have a negative effect on liquidity risk. Therefore, this study recommends that Audit committees embrace Enterprise Risk Management (ERM) to manage risks effectively across the organization. Risk management processes should be one of the major points of discussion during audit committee meetings.


Author(s):  
Anastasia Filiana Ismawati

Risk management by using risk mapping can help X Hospital located in Yogyakarta in financial management towards operating as an objective company. Enterprise Risk Management (ERM) helps organizations manage all the risks precisely and in a more integrated way. This research focuses on the risk assessment in X hospital that has not applied ERM, to analyse its financial risks. From this test, X Hospital is expected to manage its risks by using the ERM methods more, in order than the sustainability of the business can be maintained over a longer period, and thus, being able to compete with the competitors. Based on the results of risk the assessment, out of the 15 risks identified. There are top three risks that cannot be acceptable. They are: financial management report risk, contribution risk and multiple jobs risk of X Hospital. The three risks need to get response and allocations of good funds and attention from the management.


2019 ◽  
Vol 110 ◽  
pp. 02040 ◽  
Author(s):  
Ajdar Ajupov ◽  
Anna Sherstobitova ◽  
Svetlana Syrotiuk ◽  
Alexey Karataev

The article reveals features of risk-management theory in environmental enterprise. Risk management is considered according to the system approach. The interaction of the managed and managing subsystems and their cooperation with the external environment are being studied and analyzed. The object of management is a risky investment in the implementation of economic relations between economic entities. The subject of management is a team of specialists. They provide purposeful action on the controlled objects through various techniques and methods of financial risk management.


Author(s):  
Marius Motocu

Starting from the assumption that transdisciplinary is becoming a fourth research method (alongside the empirical, interpretive and critical approaches), we believe it is the favorable context for analysis as well as for sustained attempts to understand the sophisticated economy in a new conceptual framework placed at the forefront of knowledge. As a matter of fact, in accordance with the “Charter of Transdisciplinary” (Freitas & Morin & Nicolescu, Convento da Arrbida, [1]), from which we quote Article 12: “The development of a transdisciplinary economy is based on the postulate that the economy must serve the human being and not the reverse”, we will focus on several categories specifically for the economic risk, such as enterprise risk management, financial risk. In an attempt to systematize this approach, we searched to identify in the academic literature similar concerns and formulate some theoretical pillars on which to establish the transdisciplinary understanding and behavior concerning the existence of risks with economic particularity.


GIS Business ◽  
1970 ◽  
Vol 13 (2) ◽  
pp. 15-28
Author(s):  
Nouman Nasir

This research examines the effect of enterprise risk management on firm value in Pakistan. Further, this study empirically examines company characteristics that establish the execution of an enterprise risk management system. Using a sample of final dataset of 83 non-financial firms located in Pakistan. The sample included non-financial firms from the year 1999 to 2015 and so up to seventeen observation years per company. As in context of Pakistan, most of the organizations are already implement an ERM programs and establish specialized ERM departments because the ERM is now a global term and has become increasingly relevant because of the growing difficulty of risk and an additional development of regulatory frame works. For the empirical evidences, data collected from non-financial firms listed at the Pakistan Stock Exchange (PSX). Results of logistic regression shows that Capital Opacity, Profitability, Financial Leverage, Firm Size and Slack have positive impact on the implementation of an ERM system but Industrial diversification, Industry and Return on Equity are negatively related to an ERM engagement. The results of ordinary least square regression finds positive relationship between use of an ERM and firm value.


2020 ◽  
Vol 2020 (2) ◽  
pp. 33-41
Author(s):  
Irina Merzlyakova ◽  
Aleksandr Feofanov

The article considers general problems of implementing the enterprise risk management procedure. One of the ways to solve the problems arising when meeting Russian state standard ISO 9001-2015 requirements concerning risk-oriented thinking is presented. A risk assessment control model aimed at coordinating all kinds of the enterprise departments activities, forming a clear algorithm of risk management procedure implementation and attracting a greater number of employees towards this activity is offered.


2020 ◽  
Vol 24 (02) ◽  
pp. 3679-3689
Author(s):  
Ooi Chee Keong ◽  
Abdurrahman Adamu Pantamee ◽  
Shafi Mohamad ◽  
Kwong Wing Chong Garrett

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