scholarly journals Firm Ownership and Enterprise Risk Management Implementation: Evidence from the Nordic Region

2020 ◽  
Vol 13 (9) ◽  
pp. 210
Author(s):  
Naciye Sekerci ◽  
Don Pagach
Keyword(s):  
Risk Management ◽  
Quantitative Methods ◽  
Agency Cost ◽  
Enterprise Risk Management ◽  
Corporate Risk Management ◽  
Firm Ownership ◽  
Nordic Region ◽  
Enterprise Risk ◽  
Governance Tools ◽  
Dual Class

The purpose of this paper is to investigate whether firm ownership characteristics can explain demand for Enterprise Risk Management (ERM) implementation. Specifically, we examine the relationship between the presence of large shareholders, multiple blockholders and a dual-class share structure, and ERM implementation. To our knowledge we provide the first evidence on the effect of multiple blockholders and dual-class share structures on the implementation of ERM. ERM best practices can be considered as governance tools, used to monitor managerial discretion in risk management, ultimately reducing the agency cost of risk management. Accordingly, we analyze the demand for ERM in certain governance (e.g., ownership) settings. We use quantitative methods in our study: survey and regressions (tobit and logit models). Ownership data is hand-collected while ERM data comes from a survey conducted in the Nordic region. We find that ERM is implemented less frequently in firms where there are multiple blockholders, and where large controlling owners hold dual-class shares. These findings indicate that there is less demand for ERM’s monitoring role in firms that are associated with high agency costs. Given the increasing use of dual-class share structures, we believe further examination of ownership characteristics and corporate risk management is warranted.

Firm Ownership and Enterprise Risk Management: Evidence from a Developing Country

2020 ◽  
Vol 24 (02) ◽  
pp. 3679-3689
Author(s):  
Ooi Chee Keong ◽  
Abdurrahman Adamu Pantamee ◽  
Shafi Mohamad ◽  
Kwong Wing Chong Garrett
Keyword(s):  
Risk Management ◽  
Developing Country ◽  
Enterprise Risk Management ◽  
Firm Ownership ◽  
Enterprise Risk

scholarly journals Peran Internal Audit dalam Implementasi Enterprise Risk Management berupa Pelaporan Kerusakan Prosedur Risiko.

2020 ◽  
Vol 14 (2) ◽  
Author(s):  
Indarti Indarti
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
Audit Committees ◽  
Corporate Risk Management ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Enterprise Risk ◽  
Management Procedures ◽  
Corporate Risk

Implementation of Enterprise Risk Management (ERM) by Internal Audit in an orga-nization or company becomes important because Internal Audit is expected to help the organization achieve its objectives by approaching systematic and discipline to evaluate and improve the effectiveness of risk management, control, and governance process. As for which affects it is the involvement of internal auditors, the relation-ship of the audit committee with the internal auditor, and ERM.This study aims to analyze the involvement of Internal Audit in Enterprise Risk mana-gement implementation. Internal auditors should assist both management and audit committees in risk management responsibilities and supervisory roles by examining, evaluating, reporting and recommending improvements to the adequacy and effec-tiveness of risk management processes. An interesting issue is whether internal auditors involved in corporate risk management have a link to the willingness of internal auditors to report to the audit committee.The population in this study are the internal auditors and audit committees who working in companies manufacturing and financial services. The reason for determining the company is because the researcher wants to know how internal audit is involved in ERM implementation on that entity. The sample used in this research is internal auditor at private company and at Banking in this case internal auditor at local bank.The analytical method used is multiple regression analysis with SPSS version 23 pro-gram. The analysis technique used in this research is descriptive statistical analysis, classical assumption test, F-statistic hypothesis test to test influence together with 5% confidence level and use t-statistics to test partial regression coefficients. This re-search was conducted to analyze how much influence the role of Internal Audit in applying Enterprise Risk Management in the implementation of Audit.The result of this research is that the high level of internal auditor involvement in Enterprise Risk management implementation has no significant and significant im-pact on reporting of damage to risk management procedures. This indicates that the role of internal auditors in corporate risk management does not affect the reporting of damage to corporate risk management procedures. While the characteristics of strong relationships between internal auditors and audit committees positively and significantly influence the reporting of risk procedures, this indicates that internal audits that have strong internal audit-audit committee relationships strongly support internal auditors who have high involvement to report damage Greater risk procedures.

scholarly journals Recente ontwikkelingen in financieel risicomanagement

2002 ◽  
Vol 76 (4) ◽  
pp. 138-149
Author(s):  
Piet Duffhues
Keyword(s):  
Risk Management ◽  
Enterprise Risk Management ◽  
Corporate Risk Management ◽  
Enterprise Risk ◽  
Corporate Risk

Financieel risk management (frm) maakt deel uit van het meer algemene risicomanagement dat de regulering van risico’s en de financiering van verliezen die kunnen voortkomen uit het lopen van risico’s, bestudeert. Als invalshoek is gekozen voor het ‘corporate’ risk management. De theoretisch ideale benadering is de geïntegreerde of ‘holistische’ benadering, ook wel aangeduid als ‘enterprise risk management’. Naast belangrijke bijdragen aan de waarde van de onderneming heeft risk management ook als belangrijk nadeel dat het kan leiden tot een overmatige toeneming van de financiële autonomie van het management, waaruit een gebrek aan transparantie kan voortvloeien. Ter verbetering van de inzichtelijkheid in de prestaties van ondernemingen wordt een model van een ‘gesegmenteerde marktwaardebalans’ voorgesteld.

scholarly journals Pengaruh Enterprise Risk Management Disclosure, Intellectual Capital Disclosure dan Debt to Asset Ratio terhadap Nilai Perusahaan

2020 ◽  
Vol 1 (2) ◽  
pp. 147-162
Author(s):  
Leni Siti Rukmana Deffi ◽  
Dwi Cahyono ◽  
Rendy Mirwan Aspirand
Keyword(s):  
Risk Management ◽  
Intellectual Capital ◽  
Firm Value ◽  
Quantitative Methods ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Primary Data ◽  
Coefficient Of Determination ◽  
A Value ◽  
Enterprise Risk

This study aims to determine the effect of Enterprise Risk Management Disclosure, Intellectual Capital Disclosure and Debt To Asset Ratio on firm value. This research uses quantitative methods, involving a sample of 21 mining companies listed on the Indonesia Stock Exchange (IDX) for the 2015-2017 period. Primary data is collected from regular company reports. The results of the study using a partial test showed a significance value of 0.397 for the Enterprise Risk Management Disclosure variable, a significance value of 0.349 for the Intellectual Capital Disclosure variable and a significance value of 0.301 for the Debt To Asset Ratio variable. The calculated coefficient of determination results obtained a value of 0.111, which means the independent variable under study only affects the value of the company by 11%, while the remaining 89% of the company's value is influenced by other independent variables outside the variables used in this study. Conclusions, Enterprise Risk Management Disclosure, Intellectual Capital Disclosure and Debt to Asset Ratio have no influence on firm value. Keywords: Enterprise Risk Management Disclosure, Intellectual Capital Disclosure and Debt To Asset Ratio, firm value.

scholarly journals Features of enterprise risk management associated with operational risks

2021 ◽  
Vol 10 (46) ◽  
pp. 9-19
Author(s):  
Andrey S. Boyar-Sozonovitch ◽  
Alexey Yu. Buikin ◽  
Kirill V. Pitelinskiy
Keyword(s):  
Risk Management ◽  
Business Processes ◽  
Enterprise Risk Management ◽  
Classification Systems ◽  
Corporate Risk Management ◽  
Economic Relations ◽  
Operational Risks ◽  
Sufficient Detail ◽  
Enterprise Risk ◽  
Corporate Risk

Purpose of the work: within the framework of the concept of corporate risk management Enterprise Risk Management (ERM) to study the basic types of risks, assess their role in the modern economy, analyze external and internal operational risks and propose approaches to their quantitative assessment. As a research methodology, it is proposed to use the developed tools of mathematical and numerical modeling, which allows one to obtain, in the key of interest to the decision maker, qualitative and quantitative characteristics of the dynamics of business processes. The operational and economic risks (as very often occurring in the activities of subjects of economic relations) and directly affecting their economic and information security are considered in sufficient detail. It is noted that the risks associated with disruption of business continuity (which enterprises face in their activities) can be included in various classification systems of risks, grouped according to various criteria. The need to identify the mismatch between the design and actual metrics of the organizational structure (establishment of its structure and operating schemes based on the needs of the enterprise/organization) is indicated for solving the optimization problem.

A theory of enterprise risk management

2019 ◽  
Vol 19 (3) ◽  
pp. 565-579 ◽  
Author(s):  
Håkan Jankensgård
Keyword(s):  
Risk Management ◽  
Boards Of Directors ◽  
Enterprise Risk Management ◽  
Risk Governance ◽  
Corporate Risk Management ◽  
Content Type ◽  
Enterprise Risk ◽  
Risk Aggregation ◽  
The Board Of Directors

Purpose The purpose of this paper is to develop a theory of enterprise risk management (ERM). Design/methodology/approach The method is to develop a theory for ERM based on identifying the general risk management problems that it is supposed to solve and to apply the principle of deduction based on these premises. Findings ERM consists of risk governance, which is a set of mechanisms that deals with the agency problem of risk management and risk aggregation, which is a set of mechanisms that deals with the information problem of risk management. Research limitations/implications The theory, by identifying the central role of the Board of Directors, encourages further research into the capabilities and incentives of directors as determinants of ERM adoption. It also encourages research into how ERM adoption depends on proxies for agency problems of risk management, such as a decentralized company structure. Practical implications The theory encourages Boards of Directors to focus on understanding where the under and over management of risk are likely to be greatest, as opposed to the current practice of mapping a large number of risk factors. Originality/value The theory complements existing theory on corporate risk management, which revolves around the role of external frictions, by focusing on internal frictions in the firm that prevent effective risk management. It is the first work to delineate ERM vis-a-vis existing risk theory.

Effect of Enterprise Risk Management on Firm Value: Empirical Evidence from Non-Financial Firms in Pakistan

GIS Business ◽  
1970 ◽  
Vol 13 (2) ◽  
pp. 15-28
Author(s):  
Nouman Nasir
Keyword(s):  
Risk Management ◽  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Least Square ◽  
Return On Equity ◽  
Financial Firms ◽  
Enterprise Risk ◽  
Ordinary Least Square Regression

This research examines the effect of enterprise risk management on firm value in Pakistan. Further, this study empirically examines company characteristics that establish the execution of an enterprise risk management system. Using a sample of final dataset of 83 non-financial firms located in Pakistan. The sample included non-financial firms from the year 1999 to 2015 and so up to seventeen observation years per company. As in context of Pakistan, most of the organizations are already implement an ERM programs and establish specialized ERM departments because the ERM is now a global term and has become increasingly relevant because of the growing difficulty of risk and an additional development of regulatory frame works. For the empirical evidences, data collected from non-financial firms listed at the Pakistan Stock Exchange (PSX). Results of logistic regression shows that Capital Opacity, Profitability, Financial Leverage, Firm Size and Slack have positive impact on the implementation of an ERM system but Industrial diversification, Industry and Return on Equity are negatively related to an ERM engagement. The results of ordinary least square regression finds positive relationship between use of an ERM and firm value.

MODELLING AND CONTROLLING THE ENTERPRISE RISKS COMPLEX ASSESSMENT SYSTEMON THE BASIS OF RUSSIAN STATE STANDARD ISO 9001-2015 CONCERNING RISK-ORIENTED THINKING. GENERAL PROBLEMS AND WAYS OF SOLVING THEM

2020 ◽  
Vol 2020 (2) ◽  
pp. 33-41
Author(s):  
Irina Merzlyakova ◽  
Aleksandr Feofanov
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
State Standard ◽  
Control Model ◽  
Enterprise Risk Management ◽  
Iso 9001 ◽  
Management Procedure ◽  
Russian State Standard ◽  
Russian State ◽  
Enterprise Risk

The article considers general problems of implementing the enterprise risk management procedure. One of the ways to solve the problems arising when meeting Russian state standard ISO 9001-2015 requirements concerning risk-oriented thinking is presented. A risk assessment control model aimed at coordinating all kinds of the enterprise departments activities, forming a clear algorithm of risk management procedure implementation and attracting a greater number of employees towards this activity is offered.

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