Enterprise Risk Management Practices among Listed  Firms on the Ghanaian Equity Market

This study aims to examine the relationship between enterprise risk management (ERM) implementation and firm performance in Malaysia. Using the sample from 2010 to 2016, this study examines the relationship between ERM and firm performance among Malaysian top 100 public listed firms registered on the Index FTSE Bursa Malaysia 100 (FBM100) KLSE. This study also provides comparisons before and after the introduction of Bursa Malaysia Guidelines 2013. This study shows a positive and significant coefficient between profitability and firm performance towards ERM implementation. However, this study shows insignificant relationship between firm size, financial leverage and audit firm with firm performance. This study also shows that there is an increase in the mean score and standard deviation of these variables after the implementation of Bursa Malaysia Guideline 2013. The findings in this study provides an understanding to the Malaysian public listed firms on the importance of ERM and subsequently, maximise the benefits of ERM especially after the introduction of Bursa Malaysia Guidelines 2013 for the benefits of their stakeholders and regulatory improvement in future.

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Management Accounting And Risk Management Practices In Financial Institutions

Jurnal Teknologi ◽

10.11113/jt.v51.159 ◽

2012 ◽

Author(s):

Siti Zaleha Abdul Rasid ◽

Abdul Rahim Abdul Rahman

Keyword(s):

Risk Management ◽

Financial Institutions ◽

Management Practices ◽

Management Accounting ◽

Enterprise Risk Management ◽

Chief Financial Officers ◽

Operational Risks ◽

Enterprise Risk ◽

Budgetary Control ◽

Contemporary Management

Tujuan kertas kerja ini adalah untuk melaporkan hasil kajian terhadap amalan perakaunan pengurusan dan amalan pengurusan risiko di institusi kewangan. Data dikutip menggunakan borang soal selidik yang dihantar kepada 106 institusi kewangan yang tersenarai di dalam website Bank Negara Malaysia, di mana Ketua Pegawai Kewangan atau pegawai terkanan di jabatan kewangan institusi–institusi tersebut dilantik sebagai responden kajian. Analisis amalan perakaunan pengurusan berdasarkan kerangka IFAC (1998) menunjukkan bahawa amalan yang lazim diguna pakai adalah amalan di peringkat pertama, diikuti dengan amalan selepas era 1995. Dapatan ini menunjukkan bahawa amalan perakaunan pengurusan tradisional masih diguna pakai secara meluas oleh institutsi-institusi kewangan di Malaysia walapun amalan–amalan kontemporari (peringkat ke 4 dan ke atas) telah diperkenalkan. Bagi amalan pengurusan risiko, kebanyakan institusi telah melaksanakan kerangka Enterprise Risk Management (ERM) secara menyeluruh atau sebahagian. Amalan perakaunan pengurusan berkaitan penyata kewangan dan analisis nisbah dianggap sebagai memberikan sumbangan utama kepada pengurusan risiko. Kawalan belanjawan, belanjawan dan pengurusan strategik juga dianggap penting dalam pengurusan risiko operasi. Kata kunci: Perakaunan pengurusan; pengurusan risiko; institusi kewangan The aim of this paper is to report the results of a study on management accounting and risk management practices in financial institutions. The research method involved administering a questionnaire to 106 financial institutions listed on the Malaysian Central Bank’s website and the respondents were the chief financial officers (CFO) or the most senior positions in the finance department of the institutions. Based on the IFAC’s (1998) framework, it was found that the most widely practiced were the management accounting practices at Stage 1, followed by practices of Post 1995. This finding shows that despite the emergence of contemporary management accounting practices (Stage 4 onwards), traditional management accounting that focuses on financial performance and budgetary control is still widely practiced by financial institutions in Malaysia. As for the risk management practices, most of the firms have either implemented a complete or partial Enterprise Risk Management (ERM) framework. The findings from the survey showed that management accounting practices related to financial statement and ratio analysis were perceived to contribute most towards risk management. Budgetary control, budgeting and strategic planning were also perceived to be important in managing operational risks. Key words: Management accounting; risk management; financial institutions

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Effectiveness of Enterprise Risk Management Practices: A Case Study

Business Management and Strategy ◽

10.5296/bms.v10i2.15800 ◽

2019 ◽

Vol 10 (2) ◽

pp. 213

Author(s):

Hafizah Zainol Abidin ◽

Siti Zaleha Abdul Rasid ◽

Haliyana Khalid ◽

Rohaida Basiruddin ◽

Shathees Baskaran

Keyword(s):

Risk Management ◽

Management Practices ◽

Gap Analysis ◽

Enterprise Risk Management ◽

Web Based ◽

Enterprise Risk ◽

Telecommunication Companies ◽

Planning Development ◽

Current Risk

Enterprise risk management (ERM) is used to manage, integrate and aggregate all types of risks encountered by the concerned organisation. Despite having established framework and guidelines, the implementation of ERM at divisional level seemed to be lacking. There are gaps in the actual risk management practices that need to be studied and narrowed to ensure a more effective implementation of risk management. Therefore, the objective of this study is to identify characteristics of effective risk management practices and to gauge the effectiveness level at a telecommunication company. The gaps between the actual practices and the expected practices based on twenty-four (24) identified characteristics are identified and compared upon before recommendations are made to close the gaps and further enhance the risk management practices. For the purpose of this research the self-administered, web-based questionnaires were distributed to a total number of 130 engineers who were actively involved with network infrastructure planning, development and maintenance. The feedbacks received indicated that the respondents agreed with the identified characteristics of effective risk management practices and generally agreed that the effectiveness level of current risk management practices in the company is moderate or average. Furthermore, the gap analysis based on the variances indicates that there are rooms for further improvement. The study is important for more effective risk management practices in telecommunication companies.

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The Adoption and Design of Enterprise Risk Management Practices: An Empirical Study

SSRN Electronic Journal ◽

10.2139/ssrn.1658200 ◽

2011 ◽

Cited By ~ 3

Author(s):

Leen Paape ◽

Roland F. Spekle

Keyword(s):

Risk Management ◽

Empirical Study ◽

Management Practices ◽

Enterprise Risk Management ◽

Enterprise Risk

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Effects of Information Technology on Enterprise Risk Management of Listed Firms in Kenya

IOSR Journal of Business and Management ◽

10.9790/487x-16178192 ◽

2014 ◽

Vol 16 (1) ◽

pp. 81-82

Author(s):

Christopher K Yegon ◽

Keyword(s):

Information Technology ◽

Risk Management ◽

Enterprise Risk Management ◽

Listed Firms ◽

Enterprise Risk

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Enterprise risk management: history and a design science proposal

The Journal of Risk Finance ◽

10.1108/jrf-03-2017-0048 ◽

2018 ◽

Vol 19 (2) ◽

pp. 137-153 ◽

Cited By ~ 11

Author(s):

Michael McShane

Keyword(s):

Risk Management ◽

Management Practices ◽

Design Science ◽

Enterprise Risk Management ◽

Content Type ◽

Research And Practice ◽

Enterprise Risk ◽

Risk Management Process ◽

Management Concepts ◽

Science Approach

Purpose This paper aims to investigate the evolution of enterprise risk management (ERM) out of fragmented disciplinary perspectives to provide a foundation for promoting interdisciplinary research and proposes a design science approach for more effective ERM implementation in organizations. Design/methodology/approach This conceptual paper synthesizes ERM research and practice from multiple disciplines. Findings Corporate risk management concepts were born in academic finance and developed further in the finance subset known as risk management and insurance. With the advent of ERM, efforts must broaden beyond applying statistical models to quantifiable risks. Other disciplines have expanded ERM research by embracing techniques to investigate risk management practices to produce knowledge that integrates practice and theory. ERM is promoted as integrated risk management, yet silos still remain in both practice and research. Originality/value This study provides a foundation and a proposal for moving ERM past academic and organizational silos, which is necessary to achieve the ERM philosophy and increase organizational resilience. Understanding the evolution and fragmented nature of ERM research and practice provides a foundation for interdisciplinary cooperation necessary to achieve the holistic ERM philosophy. A next frontier is effective ERM implementation. This paper argues for an organizational design science approach for mitigating the resistance to change that confounds effective implementation of ERM in organizations facing an increasingly uncertain environment and outlines future research for applying the approach to implementing the ISO 31000 risk management process.

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Does Audit Committee Characteristics Promote Risk Management Practices in Nigerian Listed Firms?

Accounting and Finance Research ◽

10.5430/afr.v10n2p70 ◽

2021 ◽

Vol 10 (2) ◽

pp. 70

Author(s):

Stephen A. Ojeka ◽

Alex Adeboye ◽

Olajide Dahunsi

Keyword(s):

Risk Management ◽

Board Of Directors ◽

Audit Committee ◽

Financial Risk ◽

Enterprise Risk Management ◽

Audit Committees ◽

Listed Firms ◽

Enterprise Risk ◽

The Board Of Directors ◽

Accounting Expertise

There has been a huge and deluge of risk threatening industries at an unequalled magnitude in recent times. As such, the board of directors and senior executives are increasingly expected to manage their various organizations' risk portfolios, affecting their financial performance. This has led to the assigning of the risk assessment role to the audit committee. The board of directors and its audit committee play an essential function in Enterprise Risk Management (ERM) by building up the right condition or tone-at-the-top. Given the board's responsibilities for representing the interests of shareholders, it plays a vital role in overseeing management's approach to ERM. This study examined the relationship between audit committee characteristics and risk management of some selected listed firms in a developing country like Nigeria. The study used secondary data to describe the dependent variable (financial risk decomposed into credit risk and liquidity risk) and the explanatory variables (decomposed into audit committee accounting expertise, audit committee meetings, audit committee independence and audit committee gender). The study used pair sample t-test, student t-test, Pearson Moment Correlation and random panel data estimator for twenty (20) selected listed firms for 2012-2016. Findings indicate that there is a negative between audit committee accounting expertise and financial risk. This revealed that Accounting Expertise in Audit Committees are likely to involve in activities and practices to curb financial risk. In addition, the Audit committee meeting indicates a negative relationship with credit risk. Audit committee gender and audit committee independence have a negative effect on liquidity risk. Therefore, this study recommends that Audit committees embrace Enterprise Risk Management (ERM) to manage risks effectively across the organization. Risk management processes should be one of the major points of discussion during audit committee meetings.

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Empirical investigation of risk management practices

Management Journal of Contemporary Management Issues ◽

10.30924/mjcmi.26.2.5 ◽

2021 ◽

Vol 26 (2) ◽

pp. 79-98

Author(s):

Vilma Nasteckienė

Keyword(s):

Risk Management ◽

Management Practices ◽

Empirical Investigation ◽

Daily Basis ◽

Linear Process ◽

Enterprise Risk Management ◽

Subject Matter Experts ◽

Line Managers ◽

General Managers ◽

Enterprise Risk

In risk management research, dealing with known risks and helping companies foresee new risks are areas for subject matter experts. In practice, risk management is often perceived as a set of formal tools and procedures that must be delegated to the professionals. Despite this overall perception of risk, general managers, department managers, and other senior or line managers in organizations deal with questions associated with risk on a daily basis. They are, therefore, sometimes—even without consciously realizing it—involved in risk management practices. This article aims to analyze 'managers' involvement in risk management by empirically exploring how managers identify, assess, and respond to risks. Based on thematic analysis of observational and interview data, management practices used to manage risks were identified, and risk management as a non-linear process that is anchored on the strategic and operational levels and supported by learning from failures was defined. Two different ways of risk management can co-exist in an organization as a result of formal Enterprise Risk Management implementation.

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