scholarly journals The Implementation of ERM in Non-Life Insurance Companies in Albania

2020 ◽  
Vol 5 (6) ◽  
Author(s):  
Armanda Tola
Keyword(s):  
Risk Management ◽  
Field Study ◽  
Life Insurance ◽  
Firm Value ◽  
Management Practices ◽  
Capital Allocation ◽  
Insurance Companies ◽  
Structured Interviews ◽  
Adoption And Implementation ◽  
The Impact

Enterprise risk management (ERM) has emerged a significant change starting from the way firms manage their complex portfolio of risks. Particularly, the insurance companies that use ERM have shown propensity of success during their daily operation and have been capable to diminish the collective risk of their output. This study draws attention to the performance, firm value and capital allocation effects of ERM adoption in emerging economies using the case of non- life insurance companies in Albania. The objective of the paper is to examine the effects trigged by ERM implementation on their firm value and the factors that caused it based on a structural and institutional theoretical framework. The sample is the population itself including all the non-life insurance companies which have implemented ERM from 2015 and on. The methodology includes explanatory field study through semi-structured interviews with the key actors of risk management departments of these companies. This study distinguishes the impact of institutional and managerial pressures in adapting ERM in non-life insurance companies, based on empirical evidence and field study. The aim is to contribute in a better understanding of all the forces driving ERM adoption and implementation and the change in risk management practices and capital allocation within non-life insurance companies in Albania. The findings identify the nature of internal and external factors which can be useful in creating new policies in relation of improving risk management systems and corporate governance.

The Impact of Shariah Governance and Corporate Governance on the Risk Management Practices: Evidence from Local and Foreign Islamic Banks in Malaysia

2018 ◽  
Vol 15 (2) ◽  
pp. 1-20
Author(s):  
Sabri Embi ◽  
Zurina Shafii
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Management Practices ◽  
Principal Component ◽  
T Test ◽  
The Body ◽  
Primary Data ◽  
Islamic Banks ◽  
Shariah Governance ◽  
The Impact

The purpose of this study is to examine the impact of Shariah governance and corporate governance (CG) on the risk management practices (RMPs) of local Islamic banks and foreign Islamic banks operating in Malaysia. The Shariah governance comprises the Shariah review (SR) and Shariah audit (SA) variables. The study also evaluates the level of RMPs, CG, SR, and SA between these two type of banks. With the aid of SPSS version 20, the items for RMPs, CG, SR, and SA were subjected to principal component analysis (PCA). From the PCA, one component or factor was extracted each for the CG, SR, and RMPs while another two factors were extracted for the SA. Primary data was collected using a self-administered survey questionnaire. The questionnaire covers four aspects ; CG, SR, SA, and RMPs. The data received from the 300 usable questionnaires were subjected to correlation and regression analyses as well as an independent t-test. The result of correlation analysis shows that all the four variables have large positive correlations with each other indicating a strong and significant relationship between them. From the regression analysis undertaken, CG, SR, and SA together explained 52.3 percent of the RMPs and CG emerged as the most influential variable that impacts the RMPs. The independent t-test carried out shows that there were significant differences in the CG and SA between the local and foreign Islamic banks. However, there were no significant differences between the two types of the bank in relation to SR and RMPs. The study has contributed to the body of knowledge and is beneficial to academicians, industry players, regulators, and other stakeholders.

scholarly journals Mechanisms of Protection from Interest Rate Risk with Reference to the Life Insurance Market in Montenegro

2018 ◽  
Vol 7 (1) ◽  
pp. 17-42
Author(s):  
Milijana Novović Burić ◽  
Vladimir Kašćelan ◽  
Milivoje Radović ◽  
Ana Lalević Filipović
Keyword(s):  
Risk Management ◽  
Interest Rate ◽  
Life Insurance ◽  
Financial Management ◽  
Financial Stability ◽  
Interest Rate Risk ◽  
Economic Security ◽  
Insurance Market ◽  
Insurance Companies ◽  
Rate Risk

Abstract Insurance companies are facing major challenges that point to the need for control process and risk management. Risk management in insurance has a direct impact on solvency, economic security, and overall financial stability of insurance companies. It is very important for insurance companies to adequately calculate risks to which they are exposed. Asset liability management (ALM), as an integrated approach to financial management, requires simultaneous decision-making about categories and values of assets and liabilities in order to establish the optimum volume and the ratio of assets and liabilities, with the understanding of complexity of the financial market in which financial institutions operate. ALM focuses on a significant number of risks, whereby the emphasis in this paper will be on interest rate risk which indicates potential losses that may reflect in a lower interest margin, a lower value of assets or both, in terms of changes in interest rates. In the above context, the aim of this paper is to show how to protect from interest rate changes and how these changes influence the insurance market in Montenegro, both from the theoretical and the practical point of view. The authors consider this to be an interesting and very important topic, especially because the life insurance market in Montenegro is underdeveloped and subject to fluctuations. Also, taking into account the fact that Montenegro is a country that has been making serious efforts to join the EU, it is expected that insurance companies in Montenegro will strengthen their financial position in the market even using the ALM traditional techniques, which is shown in this paper.

scholarly journals Impact of premium reserve on life insurance investments in the Western Balkans

2021 ◽  
Vol 16 (2) ◽  
pp. 355-376
Author(s):  
Jelena Tomašević ◽  
Milijana Novović-Burić ◽  
Ljiljana Kašćelan ◽  
Vladimir Kašćelan
Keyword(s):  
Financial Market ◽  
Life Insurance ◽  
Insurance Companies ◽  
Strong Positive Correlation ◽  
Western Balkans ◽  
Insurance Sector ◽  
Correlation And Regression Analysis ◽  
Country Level ◽  
Financial Investments ◽  
The Impact

The growing importance of life insurance in the world imposes a greater need for research in this area, particularly in the Western Balkans where the trend of growth has been closely accompanied by life insurance for the past two decades. Taking into consideration that life insurance companies are significant participants in the financial market, this research paper examines the impact of the premium reserve on the volume of financial investments of life insurance companies in Western Balkan countries, based on aggregate data on country level. In order to test its effect, linear correlation and regression models were used, based on data collected for the period 2006-2016. Additionally, comparative analysis was used to compare the position of life insurance companies in financial markets. The results obtained by applying correlation and regression analysis showed that there is a strong positive correlation between premium reserve and financial investments in all of the aforementioned countries in the region. This result is an important strategic guideline for the regulators and policymakers to make advancements in the life insurance sector as well as in the financial market of the Western Balkans.

scholarly journals Pengaruh Tanggung Jawab Sosial Terhadap Manajemen Laba dengan Kepemilikan Keluarga sebagai Pemoderasi

2021 ◽  
Vol 8 (01) ◽  
pp. 92-107
Author(s):  
Sukma Mardaning Poncowati ◽  
Supatmi Supatmi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Management Practices ◽  
Earning Management ◽  
Manufacturing Companies ◽  
Environmental Aspects ◽  
Purposive Sampling ◽  
Corporate Social ◽  
The Impact

ABSTRACT Earning management practices are one of the many things that management can do in achieving company’s goals or management’s personal goals. Through earning management, the company can convey positive signals about the value and achievement of the company to the public. This study aimed to determine out how the impact of environmental aspects of Corporate Social Responsibility on earning management with family ownership as a moderation of causal relationships. This research was conducted at manufacturing companies in the consumer goods industry sector on the Indonesia Stock Exchange in 2018-2019. The sample selection in this study used purposive sampling method and obtained 43 sample companies using panel data regression analysis techniques for hypothesis testing and processed using Eviews 10. The results of this study indicate that the environmental aspects of Corporate Social Responsibility have a significant negative effect on firm value and risk management is proven to moderate partially the causal relationship.  ABSTRAK Praktik manajemen laba merupakan satu dari banyak hal yang dapat dilakukan manajemen dalam mencapai tujuan perusahaan maupun tujuan pribadi manajemen. Melalui manajemen laba, perusahaan dapat menyampaikan sinyal-sinyal positif tentang nilai dan pencapaian perusahaan kepada publik. Tujuan penelitian ini untuk mengetahui bagaimana pengaruh tanggung jawab sosial aspek lingkungan terhadap manajemen laba dengan kepemilikan keluarga sebagai moderasi hubungan kausal tersebut. Penelitian ini dilakukan pada perusahaan manufaktur sektor barang dan konsumsi yang terdaftar dalam Bursa Efek Indonesia pada tahun 2018-2019. Pemilihan sampel dalam penelitian ini menggunakan metode purposive sampling dan diperoleh 43 perusahaan sampel dengan menggunakan teknis analisis regresi data panel untuk pengujian hipotesis dan diolah menggunakan Eviews 10. Hasil penelitian ini menunjukkan tanggung jawab sosial aspek lingkungan berpengaruh negatif terhadap manajemen laba dan kepemilikan keluarga terbukti momedari secara parsial hubungan kausal tersebut.

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