scholarly journals Enterprise Risk Management Program Effectiveness, Determinants, Execution and effect on Financial Performance: Evidence from Global Takaful Industry

2020 ◽  
Vol 06 (02) ◽  
pp. 77-87
Author(s):  
Omar Masood ◽  
Kiran Javaria ◽  
Ejaz Majeed ◽  
◽  
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Program Effectiveness ◽  
Management Program ◽  
Enterprise Risk Management ◽  
Enterprise Risk ◽  
Risk Management Program

scholarly journals Enterprise Risk Management (ERM) and Firm’s Performance: A Study of Listed Manufacturing Firms in Nigeria

2021 ◽  
Vol 12 (1) ◽  
pp. 31
Author(s):  
Adegbola Olubukola Otekunrin ◽  
Damilola Felix Eluyela ◽  
Tony Ikechukwu Nwanji ◽  
Sainey Faye ◽  
Kerry E. Howell ◽  
...  
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Panel Data Analysis ◽  
Statistical Significance ◽  
Random Effect ◽  
Manufacturing Firms ◽  
Enterprise Risk Management ◽  
Accurate Information ◽  
Business World ◽  
Enterprise Risk

Increased volatility in the business world has exposed the inadequacy of traditional approaches to risk management. This has led to an integrated approach to measuring and managing risks known as enterprise risk management (ERM). At the same time, past studies on ERM disclosures have examined it within the context of book-based approach, which has not given the right and accurate information. However, this paper examined the significance of enterprise risk management and listed manufacturing firms' financial performance in Nigeria using both the book-based approach and the market-based approach. Relevant ERM theories in relation to financial performance such as Agency Theory, Stakeholders Theory, and Enterprise Risk Management Theory were examined. A panel data analysis was employed on time series and cross-sectional data of thirty listed manufacturing firms in Nigeria from 2010 to 2018. The random effect of the Hausman test was found to be more appropriate and hence adopted in interpreting the results of the analysis. The results confirm the a priori expectations that profitability ratio, liquidity ratio, market-based ration to risk board committee, the board size, firm size, and directors’ ownership all have varied impact on the firm’s profitability with varied statistical significance levels.

The effect of enterprise risk management on financial performance and firm value: the role of environmental, social and governance performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chairani Chairani ◽  
Sylvia Veronica Siregar
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Financial Performance ◽  
Firm Value ◽  
Enterprise Risk Management ◽  
Content Type ◽  
Thomson Reuters ◽  
Enterprise Risk ◽  
Moderating Role

Purpose This study aims to examine the effect of enterprise risk management (ERM) on financial performance and firm value, as well as the moderating role of environmental, social and governance (ESG) performance. Design/methodology/approach The samples in this study are listed companies in the ASEAN 5 (Indonesia, Malaysia, Philippines, Singapore and Thailand) during the years 2014–2018, with total observations of 680 firm-years. Fixed effect panel data regressions were used to test the hypotheses. The data was collected from Financial Report, Annual Reports and Thomson Reuters. Findings The results show that ERM has a positive significant effect on financial performance and firm value. This paper also finds that ESG has a significant moderating role in increasing the effect of ERM on firm value. Further, this paper divides the samples into sensitive and non-sensitive industries and find a significant moderating role of ESG performance on firm performance for sensitive industries. Originality/value Extant studies have not empirically examined the moderating role of ESG on the effect of ERM on firm performance and firm value. The findings have important implications in suggesting that firms need to analyze various threats and opportunities related to and ESG risks in achieving competitive advantage.

Effect of enterprise risk management system and implementation problem on financial performance: An empirical evidence from Malaysian listed firms

2020 ◽  
Author(s):  
Waseem Ul Hameed ◽  
Muhammad Waseem ◽  
Saeed Ahmad Sabir ◽  
Abdul Samad Dahri, Ph.D
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
The Body ◽  
Top Management ◽  
External Audit ◽  
Listed Firms ◽  
Enterprise Risk ◽  
Audit Effectiveness

The Malaysian listed companies are still struggling to maintain their enterprise risk management (ERM) system efficiently due to improper implementation problems of risk management practices. Therefore, the prime objective of this study is to reveal the audit effectiveness in mitigation of risk management implementation (RMI) problem and to examine the effect on financial performance. To achieve this objective, three hundred (300) questionnaires were distributed among the managerial employees of Malaysia listed firms by using simple random sampling. Data were analyzed by using SmartPLS 3. It is found that external audit effectiveness (EAE) and internal audit effectiveness (IAE) has a significant positive relationship with an ERM system. However, top management stress has a significant negative relationship with RMI. Additionally, ERM system has positive effect on financial performance of companies.It is also found that level of RMI playing a mediating role. Thus, this study is contributed in the body of knowledge by highlighting the vital factors to mitigate the crucial problem of RMI, particularly in Malaysian firms. Hence, the current study is quite beneficial for practitioners to implement ERM system effectively. Keywords: Enterprise risk management, internal audit, external audit, top management stress, implementation.

scholarly journals Risk management practices and financial performance nexus: Evidence from MSMEs in Osun State, Nigeria

2021 ◽  
Vol 8 (1) ◽  
pp. 44-55
Author(s):  
Olugbenga Ayo Ojubanire ◽  
Solomon Dawodu
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Management Practices ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Primary Data ◽  
Medium Scale ◽  
Firm Financial Performance ◽  
Enterprise Risk ◽  
And Control

This study assessed the effect of enterprise risk management on the firm financial performance of Micro, Small and Medium-scale Enterprises in Osun state Nigeria. Precisely, the risk encountered, the adoption of risk management practices, the implementation of Enterprise Risk Management (ERM) practices, and the financial performance of micro, small and medium scale enterprises in Osun state Nigeria. Primary data was used for this study; a well-structured questionnaire was used to elicit data from 273 respondents. The study population consists of owners and managers of small and medium businesses in Osun state, Nigeria. Data were analyzed using descriptive analysis and was the inferential statistic used to test the hypotheses. The results showed that market (33.7%), strategic (57%), financial (46.9%), operational (34.2%), management (47.6%), and technological (45.4%) are risks prevalent to micro and small businesses, but most of the respondents disagreed that the relationship of their staff to the customer is poor. Risk acceptance with a mean score of (2.27 ± 1.21) is the most utilized risk management practice adopted by the MSMEs. The implementation of ERM practices shows that MSMEs more utilized setting of objectives (43.6%), risk identification (38.3%), risk assessment (36.2%), and control activities (31.2%) and the financial performance of the businesses was moderate (69.7%). The correlation analysis shows no significant relationship between the scale of business and the adoption of risk management practices. Also, the regression analysis shows that Risk identification (β = 0.388, p ≤0.01) and Control activities (β = 1.096, p ≤0.01) are the only ERM variables that significantly affect financial performance. The study concluded that the implementation of enterprise risk management practices has a significant effect on the financial performance of Micro, Small and Medium enterprises in Osun State, Nigeria.

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