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

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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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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Enterprise risk management: Applications of economic modeling and information technology

Mind & Society ◽

10.1007/bf02512355 ◽

2001 ◽

Vol 2 (2) ◽

pp. 1-8

Author(s):

Christine P. Ries

Keyword(s):

Information Technology ◽

Risk Management ◽

Economic Modeling ◽

Enterprise Risk Management ◽

Enterprise Risk

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Modeling firm resources –enterprise risk management relationships

World Journal of Entrepreneurship Management and Sustainable Development ◽

10.1108/wjemsd-05-2015-0026 ◽

2016 ◽

Vol 12 (1) ◽

pp. 35-49 ◽

Cited By ~ 4

Author(s):

Noraznira Abd Razak ◽

Zuriah Ab Rahman ◽

Halimahton Borhan

Keyword(s):

Risk Management ◽

Sampling Technique ◽

Strong Relationship ◽

Enterprise Risk Management ◽

Firm Resources ◽

Content Type ◽

Listed Firms ◽

Enterprise Risk ◽

Short Period ◽

Depth Analysis

Purpose – The purpose of this paper is to focus, explore, and provide an in-depth analysis of the relationship between company resources and the process of enterprise risk management (ERM) in order to strengthen corporate structures against emerging uncertainties. Design/methodology/approach – This paper proposes a strategic risk management framework for the development and sustainability of corporate performance by focussing on the dimension of firm resources extracted from the resources-based theory. This paper focussed on using Malaysia listed firms under Malaysian Bourse as sample frame using the random sampling technique whereby questionnaire were distributed among head of risk management department. Of the 600 questionnaires distributed, 223 were returned completed. Findings – The survey results indicate that intangible resources play a significant roles in resources – performance relationship while the other two main dimension that are tangible resources and capabilities have shown contradictory results. Research limitations/implications – This paper only focussed on using Malaysia listed firms under Malaysian Bourse as sample frame. Practical implications – The management of risk is a dynamic phenomenon and the change of management that parallel with its evolution demand a revisiting and revamping over and over again promptly. In order to adapt and survive the volatile environment time and again, the effort to ensure long-term sustainability has to be made by the firm as success and failure can quickly replace one another in a relatively short period. The results highlight the various insight that might be helpful to managers in terms of managing the performance of the firm by concentrating entirely on its risk management and resources managements process. Originality/value – Overall it was shown that only certain dimension of resources within the firm has strong relationship with the performance variation. As such, the company has to ensure that deployment of resources has to be optimized accordingly by focussing on the types of resources that matters so that possibility of improving the outcome of the firm in the volatile global environment can be realized.

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ENTERPRISE RISK MANAGEMENT, PERFORMANCE MEASUREMENT SYSTEMS AND ORGANIZATIONAL PERFORMANCE IN MALAYSIAN PUBLIC LISTED FIRMS

International Journal of Business and Society ◽

10.33736/ijbs.543.2017 ◽

2017 ◽

Vol 18 (2) ◽

Author(s):

Siti Zaleha Abdul Rasid ◽

Nargess Golshan ◽

Mozhdeh Mokhber ◽

Gi-Gi Tan ◽

Nor Aiza Mohd-Zamil

Keyword(s):

Risk Management ◽

Performance Measurement ◽

Organizational Performance ◽

Measurement System ◽

Enterprise Risk Management ◽

Performance Measurement System ◽

Listed Firms ◽

Measurement Systems ◽

Enterprise Risk ◽

Performance Measurement Systems

There has been a call for integrating a strategic performance measurement system and enterprise risk management (ERM) as a proposed best practice for risk management. This study examines the effects of ERM and performance measurement systems (PMS) on organizational performance. In addition, this study also examines the effects of a linked ERM-PMS tool on organizational performance. The research method involved administering an online questionnaire survey to 196 public listed firms. The respondents were the head of risk management department of the firms. In the case of ERM and PMS effects on organizational performance, the result of simple linear regression supported the research hypotheses. However the results from the moderated multiple regression which was employed to test the joint effect of ERM and PMS on organizational performance did not support the research hypothesis. Based on the study results it is recommended that firms may practice ERM and PMS separately rather than linking them together, since their integration may complicate the PMS framework. Keywords: Enterprise Risk Management; Performance Measurement System; Balanced Scorecard; Organizational Performance.

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Does enterprise risk management impact accounting quality? Evidence from the Nigerian financial institutions

Investment Management and Financial Innovations ◽

10.21511/imfi.16(4).2019.02 ◽

2019 ◽

Vol 16 (4) ◽

pp. 16-27

Author(s):

Adedayo Erin Olayinka ◽

Uwalomwa Uwuigbe ◽

Eriabie Sylvester ◽

Olubukola Ranti Uwuigbe ◽

Omoike Osereme Amiolemen

Keyword(s):

Risk Management ◽

Generalized Method Of Moments ◽

Enterprise Risk Management ◽

The Body ◽

Accounting Quality ◽

Risk Disclosure ◽

African Countries ◽

Listed Firms ◽

Corporate Websites ◽

Enterprise Risk

This research empirically looked at Enterprise Risk Management impact on accounting quality of selected listed firms in the Nigerian financial sector. The study engaged the use of content analysis of the selected listed firms’ annual financial reports and corporate websites in determining the ERM disclosure index and its impact on accounting quality for a period of five years (pre-ERM period) (2007–2011) and another five years period (post-ERM period) (2013–2017). In attaining the proposed objectives, the study employed the panel Generalized Method of Moments estimator to test the hypotheses and find out the relationship between the variables. The study observed from the findings that there is no significant association between enterprise risk management and accounting quality during the pre-ERM period. This study adds to the body of knowledge in the area of corporate reporting, risk disclosure, risk management and accounting quality in emerging economies especially the Sub-Saharan African countries.

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