The Influence of Fraud Risk Management on Fraud Occurrence in Kenyan listed Companies

This study sought to establish the influence of fraud risk management practices in regard to preventive, detective and corrective controls on the level of fraud occurrence on listed firms in Kenya. This is because limited research had been conducted in the context of listed firms in Kenya and limited attention paid on how corrective controls influences fraud occurrence. A causal research design was applied. Data was obtained from a sample of 275 senior managers by using structured questionnaires. The findings revealed that only preventive and corrective controls had a profound negative effect on the degree of fraud occurrence on listed companies in Kenya. Conversely, detective controls did not considerably reduce fraud occurrence on listed companies in Kenya. The key implication of the findings noted by this study is that the proper implication of the most effectual anti-fraud measures can only be realized when the management are committed to do so. Additionally, corrective controls must be seriously looked into as an effective strategy of curbing fraud since they indeed are instrumental in curbing fraud. Future studies should be extended to the public sector in regard to the government ministries and the distinctive partitions of the private sector such as the insurance, real estate, manufacturing, automobile sectors among others respectively. Moreover, future studies can explore how firm size in terms of asset size or employee size moderates the relationship between fraud risk management practices and the level of fraud occurrence.

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The Role of the Government Internal Auditor in Fraud Risk Management: A Case Study in Local Government of Gunung Kidul and Sleman Yogyakarta Province

Proceedings of the International Conference on Administrative Science (ICAS 2017) ◽

10.2991/icas-17.2017.47 ◽

2017 ◽

Author(s):

Setya Nugraha ◽

Ely Susanto

Keyword(s):

Risk Management ◽

Local Government ◽

Internal Auditor ◽

Fraud Risk ◽

The Government ◽

Fraud Risk Management ◽

Role Of The Government

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Fraud risk management in private healthcare in South Africa

Corporate Ownership and Control ◽

10.22495/cocv13i1c8p6 ◽

2015 ◽

Vol 13 (1) ◽

pp. 868-878

Author(s):

Gerhard Philip Maree Grebe

Keyword(s):

Risk Management ◽

South African ◽

Management Practices ◽

Primary Data ◽

Healthcare Industry ◽

The South ◽

Private Hospitals ◽

Fraud Risk ◽

Fraud Risk Management ◽

Management Staff

Worldwide, the healthcare industry aims to provide better health for all. However, fraud risk has become a threat to industries and organisations, including the healthcare industry. In the South African healthcare industry, it has been found that losses due to fraud risk amounted up to R8 billion per year. The purpose of this article was to explore the management of fraud risk within the South African private hospital industry and how this is managed. Primary data was collected by means of a survey, which involved management staff at head office level and at hospital level. The findings suggest that South African private hospitals could improve their current fraud risk management practices. By implementing the recommendations provided by the study, private hospitals will be able to manage fraud risk more effectively.

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Fraud Risk Management

Corporate Fraud and Internal Control Workbook ◽

10.1002/9781119203568.ch20 ◽

2015 ◽

pp. 149-152

Keyword(s):

Risk Management ◽

Fraud Risk ◽

Fraud Risk Management

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Determinants of voluntary formation of risk management committees

Managerial Auditing Journal ◽

10.1108/maj-02-2014-0998 ◽

2014 ◽

Vol 29 (7) ◽

pp. 649-671 ◽

Cited By ~ 8

Author(s):

Nkoko Blessy Sekome ◽

Tesfaye Taddesse Lemma

Keyword(s):

South Africa ◽

Risk Management ◽

Corporate Governance ◽

Management Practices ◽

Emerging Economy ◽

Board Structure ◽

Content Type ◽

Listed Firms ◽

Practical Implications

Purpose – The aim of this paper is to examine the nexus between firm-specific attributes and a company’s decision to setup a separate risk management committee (RMC) as a sub-committee of the board within the context of an emerging economy, South Africa. Design/methodology/approach – The authors analyse data extracted from audited annual financial reports of 181 non-financial firms listed on the Johannesburg Securities Exchange (JSE) by using logistic regression technique. Findings – The results show a strong positive relationship between the existence of a separate RMC and board independence, board size, firm size and industry type. However, the authors fail to find support for the hypotheses that independent board chairman, auditor reputation, reporting risk and financial leverage have an influence on a firm’s decision to establish RMC as a separately standing committee in the board structure. The findings signify the role of costs associated with information asymmetry, agency, upkeep of a standalone RMC, damage to the reputation of directors and industry-specific idiosyncrasies on a firm’s decision to form a separate RMC. Research limitations/implications – As in most empirical studies, this study focuses on listed firms. Nonetheless, future studies that focus on non-listed firms could add additional insights to the literature. Investigating the role of firm-specific governance attributes other than those considered in the present study (e.g. gender of directors, ownership structure, etc.) could further enhance the understanding of antecedents of risk-management practices. Practical implications – The findings have practical implications for the investment community in assessing the quality of risk management practices of companies listed on the JSE. Furthermore, the results provide insights that are potentially useful to the King Committee and other corporate governance regulators in South Africa in their effort to improve corporate governance practices. Originality/value – The present study focuses on firms drawn from an emerging economy which has profound economic, institutional, political and cultural differences compared to advanced economies, which have received a disproportionately higher share of attention in prior studies. Thus, the study contributes additional insights to the literature on corporate risk management from the perspective of an emerging economy.

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Institutional logics and risk management practices in government entities: evidence from Saudi Arabia

Journal of Accounting & Organizational Change ◽

10.1108/jaoc-11-2020-0195 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Peter Murr ◽

Nieves Carrera

Keyword(s):

Risk Management ◽

Saudi Arabia ◽

Management Practices ◽

Single Case ◽

Institutional Logics ◽

Content Type ◽

Traditional Logic ◽

Adoption And Implementation ◽

The Government

Purpose This study aims to understand how institutional logics influence the adoption and implementation of risk management (RM) practices by government entities in a non-western, developing country. Design/methodology/approach This study draws on the institutional logics perspective (ILP) to analyze a case study of a government entity in Saudi Arabia. Data were obtained from semi-structured interviews, observations and documentary evidence. Findings Findings suggest that the adoption and implementation of RM projects by Saudi governmental agencies was rooted in a traditional logic, even though the catalyst of the government for adopting a RM culture across government agencies was framed within a reform program inspired by a modernization logic. In the entity under investigation, the RM project led to an unstable situation where actors were confronted with these two competing logics. Although the project used manifestations of a modernization logic, the actions of individuals within the organization were embedded in a traditional logic. Research limitations/implications The study is based on a single case study in a specific country, limiting the generalizability of the findings. Originality/value This study provides novel evidence of the adoption and implementation of RM in governmental entities in a developing, non-western, country using ILP. Doing so enhances our knowledge about how managers struggle with competing institutional logics in an underexplored setting and enriches current accounts of key drivers and barriers of RM. It also addresses calls for a deeper understanding of the logics and managerial practices interplay in the public sector.

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