The Intervening Effect of Corporate Strategy on the Relationship between Transformational Leadership and Enterprise Risk Management Adoption by Commercial State Corporations in Kenya

2022 ◽  
Vol 6 (1) ◽  
pp. 26-42
Author(s):  
Disterius Ondieki Nyandika ◽  
◽  
Paul Machoka ◽  
Michael Ngala ◽  
◽  
...  
Keyword(s):  
Risk Management ◽  
Transformational Leadership ◽  
Corporate Strategy ◽  
Strategic Plan ◽  
Business Environment ◽  
Enterprise Risk Management ◽  
Mediation Effect ◽  
Primary Data ◽  
Enterprise Risk ◽  
The Relationship

In today’s dynamic and competitive business environment, organizations are adopting the enterprise risk management framework to address the inadequacies in risk management in entities. Operating in today’s dynamic and competitive business environment organizations are faced with ever evolving risks as they implement their strategic objectives in order to create value. This study examined the intervening effect of corporate strategy on the relationship between transformational leadership and enterprise risk management adoption. This research adopted a positivist research philosophy and cross-sectional survey design approach. The target population comprised all the Commercial State Corporations in Kenya listed in the register of State Corporations Advisory Committee (SCAC) as at January 2021. The unit of analysis was the 52 Commercial State Corporations and unit of observation was top management of each entity. The study used primary data which was collected through structured questionnaires. The Statistical Package for Social Sciences (SPSS version 22) was used in regression modeling for prediction and causal inferences between study variables. The study findings indicated a partial mediation effect on the mediating role of corporate strategy on the relationship between transformational leadership and ERM adoption. The objective was achieved. The study recommends that the commercial state corporations should anchor the ERM adoption activities and other management programmes in the corporate strategic plan for effective execution. In addition, the corporate strategic plan should be cascaded to stakeholders to enhance ownership and design policy to ensure the implementation of the corporate strategic plan is effectively monitored. Keywords: Corporate Strategy, Transformational Leadership, Enterprise Risk Management & Commercial State Corporations

The Relationship between Transformational Leadership and Enterprise Risk Management Adoption by Commercial State Corporations in Kenya

2022 ◽  
Vol 6 (1) ◽  
pp. 14-30
Author(s):  
Disterius Ondieki Nyandika ◽  
◽  
Paul Machoka ◽  
Michael Ngala ◽  
◽  
...  
Keyword(s):  
Risk Management ◽  
Transformational Leadership ◽  
Enterprise Risk Management ◽  
Primary Data ◽  
Top Management ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Enterprise Risk ◽  
Mandatory Requirement ◽  
The Relationship

The adoption of Enterprise Risk Management (ERM) by State Corporations in Kenya is a mandatory requirement and yet, the information on levels of adoption amongst Commercial State Corporations, most of which continue to experience poor performance due to weak governance is scanty. The objective of the study was to establish the relationship between transformational leadership and enterprise risk management adoption. This study adopted a positivist research philosophy and cross-sectional survey design approach. The target population comprised all the Commercial State Corporations in Kenya listed in the register of State Corporations Advisory Committee (SCAC) as at January 2021. The unit of analysis was the 52 Commercial State Corporations and unit of observation was top management of each entity. The researcher applied purposive sampling to select top management and surveyed the total population of top management that derived a sample size of 364 participants. The study used primary data which was collected through structured questionnaires. The descriptive and inferential statistics was employed in the analysis. The Statistical Package for Social Sciences (SPSS version 22) was used in regression modeling for prediction and causal inferences between study variables. The study findings indicated that Transformational Leadership has a significant relationship with ERM adoption. The study recommends that commercial state corporations embrace transformational leadership in order to enhance ERM adoption. Keywords: Transformational Leadership, Enterprise Risk Management & Commercial State Corporations

scholarly journals Examining the Relationship Between Enterprise Risk Management and Firm Performance in Malaysia

2019 ◽  
Vol 10 (3) ◽  
pp. 239
Author(s):  
Mazurina Mohd Ali ◽  
Nur Shazwani Ab Hamid ◽  
Erlane K Ghani
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Enterprise Risk Management ◽  
Audit Firm ◽  
Listed Firms ◽  
Significant Coefficient ◽  
Enterprise Risk ◽  
Before And After ◽  
The Mean ◽  
The Relationship

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.

Enterprise Risk Management from the General Insurance Actuarial Perspective

2008 ◽  
Vol 14 (3) ◽  
pp. 433-525 ◽  
Author(s):  
M. H. Tripp ◽  
C. Chan ◽  
S. Haria ◽  
N. Hilary ◽  
K. Morgan ◽  
...  
Keyword(s):  
Risk Management ◽  
Best Practice ◽  
Corporate Strategy ◽  
Enterprise Risk Management ◽  
The United Kingdom ◽  
General Insurance ◽  
Enterprise Risk ◽  
On Line ◽  
The Subject ◽  
Future Work

ABSTRACTThe authors have reviewed over 60 texts on the subject of Enterprise Risk Management (ERM). In this paper they set out a summary of ERM based on three of those sources, selected for their relevance and breadth of view. The paper observes that the approaches described vary widely in nature. A separate ‘on-line” source is provided, which summarises key readings from the 60 texts. Combining findings from these texts with the authors' own experiences, the paper suggests some best practice checklists, designed to enable organisations to take stock of their current ERM frameworks. It discusses other aspects of ERM for practitioners, including extreme events, opportunity management and the link with corporate strategy. The paper looks at immediate and longer-term implications for actuaries in the United Kingdom, and then poses questions about future professional development and education. It suggests an emerging role for the ‘ERM actuary’, and, finally, it suggests future work to progress the development of ERM and the actuaries' role.

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 Ownership, board, and enterprise risk management

2020 ◽  
Vol 10 (1) ◽  
pp. 44-55
Author(s):  
Luís Otero González ◽  
Luís Otero González ◽  
Luis-Ignacio Rodriguez Gil ◽  
Pablo Durán Santomil ◽  
Pablo Durán Santomil ◽  
...  
Keyword(s):  
Risk Management ◽  
Board Of Directors ◽  
Linear Structure ◽  
Enterprise Risk Management ◽  
Stock Exchanges ◽  
Family Ownership ◽  
Enterprise Risk ◽  
The Board Of Directors ◽  
Implementation Level ◽  
The Relationship

This paper analyses the effect of family ownership and the characteristics of the board of directors on the implementation level of enterprise risk management (ERM) in Spanish non-financial companies. The sample consists of 162 Spanish non-financial companies listed on Spanish stock exchanges and markets during 2012–2015. The results obtained show that the relationship between the level of family ownership concentration and the implementation level of an ERM system has a non-linear structure. Therefore, a reduction in implementation for moderate ownership levels is observed, although this increases with high ownership values. Regarding corporate governance, our study confirms the importance of certain characteristics of the board of directors, such as the size and the figure of the shareholder director in the implementation of formal ERM systems.

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