scholarly journals Using Identity Theft To Teach Enterprise Risk Management Make It Personal!

2008 ◽  
Vol 4 (6) ◽  
pp. 43-50 ◽  
Author(s):  
Norma C. Holter ◽  
W. Michael Seganish
Keyword(s):  
Risk Management ◽  
Balanced Scorecard ◽  
Identity Theft ◽  
Internal Controls ◽  
Enterprise Risk Management ◽  
Organizational Strategies ◽  
Business Policy ◽  
The Balanced Scorecard ◽  
Real Risk ◽  
Enterprise Risk

This article introduces an innovative way to teach the Enterprise Risk Management (ERM) Integrated Framework (as developed by COSO), while at the same time informs the student of a real personal risk -- identity theft. This example of assessing and managing a real risk will enhance the students understanding of risk management, thereby increasing the skill set of the student. The student who gains an understanding of the ERM concepts can then apply this tool to all of the disciplines of business. The ERM framework can be tailored to any discipline, as shown by the following examples: presented in connection with the Balanced Scorecard; evaluating different organizational strategies in a Business Policy class; case analysis in Management or Marketing (particularly a new product or new market); in an Auditing class with discussion of internal controls; in Finance to evaluate the decision to invest in derivatives or capital project, and in an Entrepreneurship class.

scholarly journals Evaluation of the Level of Enterprise Risk Management Adoption and Maturity of Insurance Companies in Kenya

2017 ◽  
Vol 1 (2) ◽  
pp. 1
Author(s):  
Caroline Njagi ◽  
Dr. Amos Njuguna
Keyword(s):  
Risk Management ◽  
Risk Tolerance ◽  
Enterprise Risk Management ◽  
Strategic Decision ◽  
Insurance Companies ◽  
Top Management ◽  
Organizational Strategies ◽  
Risk Management Framework ◽  
Enterprise Risk ◽  
Risk Appetite

Purpose: The purpose of this study was to evaluate the extent to which insurance companies in Kenya have adopted ERM process, and then to assess the maturity, challenges and strategies in the implementation of this process.Materials and methods: The research design adopted for the study is descriptive research. The researcher conducted a survey on the 49 insurance companies of Kenya to encapsulate the factors that are relevant in articulating the extent of adoption of ERM and the level of maturity. A sample of 196 respondents was selected from a population of 245 respondents. The study used quantitative and qualitative methods of data analysis. Statistical Package for Social Sciences (SPSS) version 20 program was used for analysis. The results were presented using tables and pie charts. Similarly, qualitative data was summarized and categorized according to common themes and presentedin continuous prose form.Results: The study concluded that organizational related challenges hindered implementation of ERM programs. Results revealed that inadequate application of the risk management framework, ambiguity in roles and responsibilities in risk management, complexities in risk measurement, lack of embodiment of ERM in organizational culture, difficulty in risk quantification, linking risk information to strategic decision making, ensuring that all decisions remain within the organization’s risk tolerance, proactively identifying current and emerging risks, cost and budgetary constraints, misalignment of the risk and business operating models, risk management not seen as a priority by top management and inadequate information to make risk-based decisions hindered implementation of ERM frameworks among insurance firms in Kenya. The findings imply that organization related challenges have a significant effect on ERM implementation.Recommendations: The study recommends that there should be better organizational strategies to help improve implementation of ERM programs. It was found that building a strong risk culture, engaging consultants, building a dedicated ERM function, committed board of directors and top management, developing risk appetite statement, appointment of a Chief Risk Officer (CRO) and availing ERM budgets improved the implementation of ERM programs. Key words: enterprise risk management, adoption, maturity

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.

Retail 4.0 adoption and firm performance among Malaysian retailers: the role of enterprise risk management as moderator

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Poorni Sakrabani ◽  
Ai Ping Teoh
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Balanced Scorecard ◽  
Online Survey ◽  
Enterprise Risk Management ◽  
Cross Sectional ◽  
Content Type ◽  
Enterprise Risk ◽  
Impact Of Technology ◽  
The Impact

PurposeThe purpose of this study was to ascertain the determinants of firm performance for Malaysian retailers.Design/methodology/approachAn online survey was conducted to collect responses from members of the Malaysian Retailers' Chain Association. A total of 126 responses were obtained. Data analysis was done by using the PLS-SEM method.FindingsThe results of the study indicate that Retail 4.0 adoption is able to improve retailers' performance as-a-whole by improving the four perspectives of firm performance as given in the Balanced Scorecard, i.e. the finance perspective, the customer perspective, the internal processes' perspective and also learning and growth perspective. Further, enterprise risk management was found to have a positive moderating effect on retailers' performance as-a-whole and also on the finance and customer perspectives of performance.Research limitations/implicationsThe study was conducted only in Malaysia and so, it might be geographically limited. Besides, it is cross-sectional in nature and therefore, the impact might be different if the study had been conducted over a longer period.Practical implicationsThis study provides a useful framework for retailers who are seeking to improve firm performance.Originality/valueThis is one of the first studies to show the impact of Retail 4.0 adoption on firm performance. Besides, this is also the first time, enterprise risk management has been introduced as a positive moderator on the impact of technology adoption on retailers' performance.

The Impact of Enterprise Risk Management on the Audit Process: Evidence from Audit Fees and Audit Delay

2017 ◽  
Vol 37 (3) ◽  
pp. 25-46 ◽  
Author(s):  
Cristina Bailey ◽  
Denton L. Collins ◽  
Lawrence J. Abbott
Keyword(s):  
Risk Management ◽  
Audit Fees ◽  
Internal Controls ◽  
Enterprise Risk Management ◽  
Data Availability ◽  
Audit Process ◽  
Enterprise Risk ◽  
Stage Analysis ◽  
The Impact ◽  
Jel Classifications

SUMMARY Prior research examining enterprise risk management (ERM) focuses mainly on entity-level measures, relying heavily on the link between ERM and internal controls. We argue that auditors leverage the client's ERM system at the application level to create audit efficiencies beyond those created by strong internal controls. Using a Heckman two-stage analysis for our sample of insurance/reinsurance firms rated on ERM quality by Standard & Poor's, we find results consistent with our expectations that higher-quality ERM systems incrementally reduce audit fees, audit delay, and the likelihood of late filing. However, we find that this association is nonlinear and that much of the assurance benefit from ERM systems is captured when firms improve their ratings from Weak to Adequate. JEL Classifications: G22; M41. Data Availability: The Standard & Poor's data on ERM quality is available at: http://www.standardandpoors.com/ratingsdirect/.

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