Corporate Governance and Enterprise Risk Management

2007 ◽  
Vol 19 (2) ◽  
pp. 83-85
Author(s):  
David Cannon ◽  
Joseph H. Godwin ◽  
Stephen R. Goldberg
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Enterprise Risk Management ◽  
Enterprise Risk

scholarly journals IMPACT OF GOOD CORPORATE GOVERNANCE TOWARDS CORPORATE VALUE WITH ENTERPRISE RISK MANAGEMENT AS MODERATING VARIABLE (EMPIRICAL STUDY OF FINANCIAL COMPANIES LISTED IN IDX FOR THE PERIOD 2017-2019)

2021 ◽  
Vol 13 (1) ◽  
pp. 74-98
Author(s):  
Lydia Sibarani ◽  
Herlina Lusmeida
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Audit Committee ◽  
Enterprise Risk Management ◽  
Managerial Ownership ◽  
Corporate Value ◽  
Good Corporate Governance ◽  
Enterprise Risk ◽  
Multiple Regression Method ◽  
The Impact

Abstract- This research aims to observe and analyze the impact of Good Corporate Governance towards Corporate Value as well as analyzing whether Enterprise Risk Management is able to moderate its impact. Good Corporate Governance is proxied by the presence of Independent Commissioners, Audit Committee, as well as Managerial Ownership. The population of this research includes all financial companies that publish their annual report in Bursa Efek Indonesia (BEI) over the period of 2017-2019. Data were analyzed using the multiple regression method and the moderated regression analysis. The result of this research found that Independent Commissioners and Audit Committee gives positive and significant impact towards Corporate Value while Managerial Ownership gives negative and insignificant impact towards Corporate Value. Enterprise Risk Management is not able to moderate the impact of Independent Commissioner and Managerial Ownership towards Corporate Value but is able to moderate the impact of the Audit Committee towards Corporate Value. Keywords: Audit Committee; Corporate Value; Corporate Governance; Independent Commissioner; Managerial Ownership

On the Determinants of Enterprise Risk Management Implementation

2011 ◽  
pp. 87-100 ◽  
Author(s):  
Kurt Desender
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Enterprise Risk Management ◽  
Important Influence ◽  
Board Composition ◽  
Board Independence ◽  
Enterprise Risk ◽  
Fraudulent Reporting

Corporate governance failures and new legislation have emphasized the importance of enterprise risk management (ERM) in preventing fraudulent reporting. Despite the increased attention to ERM, little research has been done to explain why some organizations embrace ERM while others do not. The objective of this paper is to explore how the board composition is related to the degree of enterprise risk management implementation. Our main results reveal that the position of the CEO in the board has an important influence on the level of ERM. Furthermore, we find that board independence by itself is not sufficient to induce higher levels of ERM. Board independence is only significantly related to ERM when there is a separation of CEO and chairman. Firms with an independent board and a separation of CEO and chairman show the highest level of ERM. One possible explanation for our results is that CEOs do not favour ERM implementation and are able to withstand pressure from the board when they are occupying the seat of chairman.

Tesco Accounting Misstatements: Myopic Ideologies Overshadowing Larger Organisational Interests

2016 ◽  
Vol 7 (1) ◽  
pp. 9
Author(s):  
Gagan Kukreja ◽  
Sanjay Gupta
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Control Systems ◽  
Internal Controls ◽  
Enterprise Risk Management ◽  
Reporting Standards ◽  
Management Change ◽  
The People ◽  
Enterprise Risk

This case study explores what went wrong in Tesco that resulted in the fraud of accounting misstatements of the magnitude of £263 million, why the fraud remained undetected over a number of years, which resulted in catastrophic consequences for both Tesco and its stakeholders. Furthermore, it highlights the lessons learnt from this debacle in Tesco, with focus on enterprise risk management, change management, corporate governance, materiality of transactions from accounting perspective, auditors' independence, sound accounting practices, internal controls and, employees' incentives policies. Finally, while the ultimate price of these scandals is paid by the society at large - particularly stockholders who put their hard earned savings in these institutions just on the basis of their trust on them - and while such scandals are often attributed to gaps in internal controls and auditors' negligence, this study concludes that, whatever controls are put in place or whatever accounting and reporting standards are set, if the people who are the part of system themselves decide to bypass the control systems, it is next to impossible to prevent such fraudulent activities. This case study has been prepared for educational purposes based on public available sources such as newspapers, magazines, websites and other referred articles.

scholarly journals The Effectiveness of Enterprise Risk Management and Internal Audit Function on Quality of Financial Reporting in Universities

2017 ◽  
Vol 9 (4(J)) ◽  
pp. 230-241
Author(s):  
Wadesango N ◽  
Mhaka C.
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Reporting ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
State Universities ◽  
Internal Audit Function ◽  
Enterprise Risk ◽  
The Impact

This study examined the impact of enterprise risk management (ERM) and internal audit function (IAF) on the financial reporting quality (FRQ) of state universities in Zimbabwe. Utilizing a dataset of 250 respondents from across nine (9) state universities, the researchers examined the effectiveness of ERM and the IAF on the quality of financial reporting in state universities. The researchers employed the contingency theory and studied each university separately to report on items that are specific to each and then also establish a commonality in the definition of parameters to be used in setting up the benchmark against which future performance may be measured. The findings were that there is a strong and significant relationship between ERM and the FRQ and also that there is a positive relationship between the internal audit function and FRQ. Quality internal audit results improved corporate governance systems. The results also underscore the significance and need for central government to establish and monitor a system of good ERM processes that minimize corporate governance breaches and enhance integrity and independence in financial reporting in state universities.

scholarly journals The Benefit of Enterprise Risk Management (ERM) On Firm Performance

2019 ◽  
Vol 17 (2) ◽  
pp. 168
Author(s):  
Mochamad Muslih
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Firm Performance ◽  
Stock Exchange ◽  
Control Variable ◽  
Secondary Data ◽  
Enterprise Risk Management ◽  
Enterprise Risk ◽  
Research Findings ◽  
Independent Variable

<p>There were inconsistencies on the results of some ERM researches formerly.  There were some variabilities on the benefits and obstacles hampering the implementation of ERM.  The purpose of this research is to study the benefits of  Enterprise Risk Management (ERM) to increase firm performance.</p><p>This research used quantitative method, using the statistical software  of eviews 9 to process the data samples.  The Sampled firms arecompanies listed in the Indonesian stock exchange. 108 questionnaires were filled by the respondents. The variables measured are firm performances and enterprise risk management. The implementation of corporate governance and firm performance are also measured as control variables. Regression procedures were used to analyze the data samples. Some secondary data were also used to enrich analizing the research phenomena.</p><p>The research findings showed a significant relationship between ERM with firm performance. The effect of ERM as independent variable on firm performance waso significant so that the influence of corporate governance (CG) as  control variable became insignificant. Actually based on individual regression, CG influence on firm performance is significant. But totally the influence became insignificant, hampered by the magnitude of ERM influence significancy. These findings add to positive heuristics of falsification model of research as proposed by Imre Lakatos.</p>

scholarly journals Gestión de riesgos corporativos y la necesidad de su regulación en las empresas argentinas. / Enterprise risk management and its need of regulation in argentine companies.

2020 ◽  
pp. 53-67
Author(s):  
Ana María Robles ◽  
Ariel Alejandro Castañeda ◽  
José Roberto Carrizo
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Research Work ◽  
Enterprise Risk Management ◽  
Enterprise Risk

Este artículo es una síntesis de un trabajo de investigación realizado en el marco de convocatoria de la Universidad Blas Pascal (2017-2018) cuyo objetivo surgió como consecuencia de la importancia de considerar como relevante todo aquello vinculado con la gestión de riesgos y su impacto en el gobierno corporativo. ABSTRACT: This article is a synthesis of a research work carried out within the framework of the Blas Pascal University (2017-2018), whose objective arose as a consequence of the importance of considering as relevant everything related to risk management and its impact on corporate governance.

Corporate governance and the information system: how a framework for IT governance supports ERM

2014 ◽  
Vol 14 (3) ◽  
pp. 320-338 ◽  
Author(s):  
Michele Rubino ◽  
Filippo Vitolla
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Internal Control ◽  
It Governance ◽  
Enterprise Risk Management ◽  
Content Type ◽  
Enterprise Risk ◽  
Control Framework ◽  
Internal Control System ◽  
A Company

Purpose – The purpose of this paper is to illustrate how information technology (IT) governance supports the process of enterprise risk management (ERM). In particular, the paper illustrates how the Control Objectives for Information and related Technology (COBIT) framework helps a company reach its objectives by integrating and supporting the Enterprise Risk Management by the Committee of Sponsoring Organizations (COSO ERM) framework. Design/methodology/approach – This paper explains how the integration between the two frameworks (COSO ERM and COBIT 5) can represent, for any organization, a good way to achieve the objectives of internal control and risk management and, more generally, corporate governance. Findings – The paper identifies some gaps in the COSO ERM and illustrates how the COBIT framework facilitates the implementation of an adequate system of internal control. Originality/value – The originality of the work presented here is in analyzing the COBIT 5 together with the COSO ERM framework. This paper highlights that is not enough to apply only an internal control framework for achieving the risk management and internal control system objectives. An IT governance framework, such as COBIT 5 is proposed as a tool that support risk management in order to develop an adequate system of internal control.

scholarly journals Aligning Corporate Governance with Enterprise Risk Management Adoption in the Nigerian Deposit Money Banks

2017 ◽  
Vol 1 (2) ◽  
pp. 4-14
Author(s):  
Ishaya John Dabari ◽  
Sini Fave Kwaji ◽  
Mohamad Zulkurnai Ghazali
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Structural Equation ◽  
Internal Audit ◽  
Policy Formulation ◽  
Enterprise Risk Management ◽  
Equation Modeling ◽  
Survey Method ◽  
Cross Sectional ◽  
Enterprise Risk

The alarming rate of corporate failures as seen universally has necessitated this study apparently; the failures have known no boundary as it cuts across both the very big organizations and the very small corporate entities especially financial industries. The objective of this study is to align corporate governance (CG) with Enterprise Risk Management (ERM) adoption in the Nigeria Deposit Money banks (DMBs). The study adopted cross-sectional research design, survey method and questionnaire technique to collect data in 21 Nigerian DMBs. A total of 722 questionnaires were distributed, out of which 435 were found usable for further analysis. The research adopted Structural Equation Modeling in Stata for the data analysis. Empirical evidence suggests that internal audit effectiveness, human resource competency and top management commitment were positively significant. This implies that there is a significant positive relationship between CG and ERM adoption. Conclusively, the study has provided insightful results for the banking industry, regulators, practitioners and academia that will potentially assist in policy formulation, implementation and evaluation. Thus, a clarion calls for all the stakeholders in the industry to guarantee broad implementation of ERM in all the banks in compliance with the CBN Code of corporate governance.

Sign in / Sign up

Export Citation Format

Share Document