Internal Control Frameworks and Its Relation with Governance and Risk Management: An Analytical Study

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Mahammed Adil Mohammed ◽  
Thamer Kadhim Al-Abedi ◽  
Hakeem Hammood Flayyih ◽  
Hussein Ali Mohaisen
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Analytical Study ◽  
Effective Management ◽  
Management Framework ◽  
Risk Management Framework ◽  
Control Framework ◽  
The Subject ◽  
And Control ◽  
Governance Risk

This study aims at searching in different editions of internal control frameworks and its relation with governance and risk management by dividing the study into three themes. The first one includes studying each framework in terms of the concept of internal control, elements and goals and what makes it different form the latter. The second concerns the relation of internal control with governance and the importance of what it provides to economic unity. The third one and the last regards the relation of internal control to risk management framework and what economic unity will achieve if it managed its risks properly through presenting a number of academic studies that dealt with the subject of the study. The design of this paper depends on reviewing literature during the period (2012-2019) and analyzing results concluded by these literatures concerning the study of internal control framework and its relation with governance and risk management. The study concluded that economic unity cannot achieve its goals and maintain success without an effective management of risks, control and governance. Board of directors and administration both need each other to apply governance, risk management and control effectively.

scholarly journals UPRAVLJANJE RIZICIMA I INTERNA REVIZIJA

2021 ◽  
Vol 9 (1) ◽  
pp. 48-57
Author(s):  
Zorica Jović
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Basic Element ◽  
Security Measures ◽  
Management Framework ◽  
Internal Auditors ◽  
Consulting Services ◽  
Risk Management Framework ◽  
Enterprise Risk ◽  
And Control

People undertake risk management activities to identify, assess, manage, and control all types of events or situations. This can range from a single project or narrowly defined types of risk, for example, market risk, to the threats and opportunities faced by the organization. Organizations are under pressure to identify all business risks they face - social, ethical, and environmental risks as well as financial and operational - and to explain that they are being managed at an acceptable level. Risk management is a basic element of corporate governance. Management is responsible for establishing and operating the risk management framework on behalf of the board. A company's risk management brings many benefits that result from its structured, consistent, and coordinated approach. The key role of internal auditors concerning enterprise risk management should be to assure the effectiveness of risk management to management. When an internal audit extends its activities beyond this key role, it should apply certain security measures, including treating engagements as consulting services and applying all relevant standards. In this way, an internal audit will protect its independence and the objectivity of its assurance services

Ar-Rahnu (Pawn-broking) in Al-Qamari Bank Berhad

2015 ◽  
Vol 5 (5) ◽  
pp. 1-6
Author(s):  
Aisyah Abdul-Rahman ◽  
A.M. Hafizi
Keyword(s):  
Risk Management ◽  
Learning Outcomes ◽  
Management Practices ◽  
Islamic Banking ◽  
Content Type ◽  
Postgraduate Students ◽  
Management Framework ◽  
Risk Management Framework ◽  
Banking Institutions ◽  
The Subject

Subjectarea The case is suitable for use in the topics related to the functions and roles of Islamic pawn-broking and the Islamic risk management framework. Studylevel/applicability The case is designed for undergraduate and postgraduate students taking courses in Islamic Banking, Islamic Finance and Risk Management for Islamic Banking Institutions. Case overview This case is meant to explain the mechanics of pawn-broking (Ar-Rahnu) in Islam as well as to understand the risk management of Ar-Rahnu in the bank. Ar-Rahnu is discussed, in general, from the perspective of muamalat and then is related to the financing service offered through Ar-Rahnu scheme at Al-Qamari Bank Berhad (a disguised bank). Ar-Rahnu means making an asset as a security or collateral for a debt. The collateral will be used to settle the debt when the debtor is in default. It may also be known as borrowing with either collateral or pawn-broking. In Al-Qamari Bank Berhad, gold and jewellery are the subject of collateral for Ar-Rahnu. In return, customers will get the cash based on the margin of loan with regards to the current market value of gold/jewellery as determined by the bank. The operation of Ar-Rahnu is discussed in Exhibit 1, while the risk management of Ar-Rahnu is discussed in Exhibit 2. Expectedlearning outcomes The learning outcomes include: to identify a problem and issue related to Ar-Rahnu; to evaluate the modus operandi of Ar-Rahnu; to analyze the risk management practices of Ar-Rahnu; and to develop decision criteria on whether Ar-Rahnu in Al-Qamari bank is Shariah-compliant or not. Supplementarymaterials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

scholarly journals Risk Disclosure and Performance of Malaysian Construction Public Listed Companies

2019 ◽  
Vol 266 ◽  
pp. 03012
Author(s):  
Wong Ching Ching ◽  
Ali M. Alashwal ◽  
Faizul Azli Mohd Rahim
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Listed Companies ◽  
Regulatory Compliance ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Corporate Code ◽  
Management Framework ◽  
Risk Management Framework ◽  
Increased Risk

Due to regulatory reforms, corporate governance has evolved with Enterprise Risk Management become prominence since the 1990s. In Malaysia, Statement of Risk Management and Internal Control with Malaysian Corporate Code of Governance are regulatory compliance on risk management for the Public Listed Companies. Companies are required to make risk disclosures in their annual report based on Risk Management Framework, which indirectly provided insights for shareholders and investors to assess the company’s performance. This study aims to determine the extent of risk implementation based on Risk Management Framework and the effect on construction Public Listed Companies performance. The sample of this study consists of 227 construction Public Listed Companies in Malaysia Bourse from 2011, 2014, 2015, 2016 and 2017. Content analysis is conducted on the company’s annual reports for the five years based on Risk Management Framework components and financial ratios. The study revealed the presence of both guidelines had increased risk disclosure among construction Public Listed Companies but there was no significant improvement in their financial performance.

Socio-Cultural and Multi-Disciplinary Perceptions of Risk

2012 ◽  
Vol 1 (1) ◽  
pp. 1-11 ◽  
Author(s):  
Yölande Goodwin ◽  
Kenneth David Strang
Keyword(s):  
Risk Management ◽  
Management Practice ◽  
Risk Theory ◽  
Assessment Practices ◽  
Cultural Perceptions ◽  
Management Framework ◽  
Perceptions Of Risk ◽  
Planning And Control ◽  
Risk Management Framework ◽  
And Control

This is a review of the extant risk theory literature that hypothesizes new cross-cultural perceptions and multi-disciplinary techniques have emerged in risk management practice. Basic concepts in risk theory are introduced and then the generally accepted risk management framework is explained (identification, assessment, planning, and control). Global macro-environment factors and contemporary risk assessment practices are briefly explored. A multi-disciplinary socio-cultural meta-model of risk theory is developed. The paper concludes with ideas and proposes research questions for future studies.

A Comprehensive Project Risk Management Framework for Today’s Dynamic Environment

2009 ◽  
Author(s):  
Ghaleb Y. Abbasi
Keyword(s):  
Risk Management ◽  
Dynamic Environment ◽  
Risk Identification ◽  
Contingency Planning ◽  
Management Framework ◽  
Risk Management Framework ◽  
Project Risks ◽  
Potential Risks ◽  
And Control ◽  
Causes Of Failure

A comprehensive risk management framework (RMF) was developed and introduced to help management deal with the project risks in today’s changing world using a well-defined process. Several projects were analyzed to determine their causes of failure and identify risk elements. The RMF consisted of six phases; project identification, risk identification, risk assessment, response development, contingency planning, and implementation and control. Each process must be tailored to the particular circumstances of the project and of the organization undertaking it. The RMF treated risks in a structured process starting by identifying the project and the potential risks, assessing these risks and responding to each risk. Using such an approach management can identify potential risks that may affect the project and respond proactively. The developed framework is comprehensive and applicable for any project type.

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