Enterprise Risk Management Adoption in Malaysia: A Disclosure Approach (original) (raw)

Manuscript type: Research paper Research aims: This paper aims to identify Malaysian companies that had adopted Enterprise Risk Management (ERM) and to determine the intensity of risk disclosure practised before and after the implementation of the 2013 Bursa Malaysia Guidelines on Risk Management and Internal Control. Design/ Methodology/ Approach: This study used a dual approach of content analysis followed by an online survey. In the first phase, content analysis was performed on the annual reports of 754 Malaysian public listed companies by using the common terms used in ERM. In the second phase, an online survey was circulated among 330 ERM adopters which were identified from the content analysis approach. Research findings: Findings from the content analysis show that the overall level of risk disclosure before and after the current guidelines had increased by five (5) per cent. Findings from the online survey further suggest that 53 per cent of respondents confirmed that ERM is indeed an integral part of their organisation. Theoretical contributions/ Originality: This study seeks to broaden current literature on risk disclosure by investigating the regulatory impact on disclosure practices. The second contribution lies in the use of dual approaches to data collection: content analysis and online survey, both of which enhance the accuracy of findings without adversely impacting on its generalisability and the costs of conducting this research. Practitioner/ Policy implications: The findings of the current study reflect on the true ERM adoption rate in this part of the region which is useful to practitioners who are still skeptical of ERM. Knowing that more than half of the public listed companies have implemented ERM may be the motivation for the non-adopters to implement ERM. Moreover, findings will encourage policy makers to introduce voluntary guidelines to regulate ERM implementation and disclosure practices in Malaysia. Research limitations/ Implications: The use of keyword search to identify ERM adopters bears the conflict of substance over form, particularly when the common terms in the disclosure do not reflect the actual practices. Future research may need to address the conflicts by using a score method that can help to improve the scientific aspects of the methodology. A framework for the analysis of risk communication and an index to measure the quality of risk disclosure can further enhance the instrument.

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Enterprise Risk Management (ERM) includes the methods and processes used by organizations to manage risks and seize opportunities that maximize firm performance. Thus, the ERM framework can mitigate the occurrence of financial crisis while enhancing firms operating performance and potentially providing capital market benefits. This study uses a unique set of data obtained via survey of Internal Audit Function management and publicly disclosed financial information to empirically examine corporate governance factors associated with adoption of ERM, potential operational and market performance benefits associated with adoption, and the impact of the risk factors disclosures on the firm‘s cost of equity and debt. Specifically, this three (3) paper dissertation contributes to the existing academic literature by considering factors and benefits associated with Enterprise Risk Management (ERM). The first paper of the dissertation considers the audit committee and IAF as potential determin...

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2008

Our paper deals with aspects regarding risk and uncertainty.Using content analyze in this paper we survey the disclosure level of risk management information in the annual report of top Romanian listed companies.

An exploratory study of ERM perception in Oman and proposing a maturity model for risk optimization

Enterprise Risk management is a process vital to enterprise governance which has gained tremendous momentum in modern business due to the dynamic nature of threats, vulnerability and stringent regulatory requirements. The business owners have realized that, risk creates opportunity which in turn creates value. Identifying and mitigating risk proactively across the enterprise is the purview of Enterprise Risk Management (ERM).However, key errors in the ERM process such as misinterpretation of statistical data, overlooking change management, inadequate attention to supply chain interdependencies, excessive trust of insiders and business partners, ambiguous grouping of risks and poor documentation has contributed significantly to the failure of ERM. To examine the ERM perception in Oman, the authors have conducted a survey among various risk management practitioners. Based on the findings, the authors have broadly classified risk into three types namely business risks, technical risks ...

Success Model for Risk Management Disclosure

2020

Every company must find risks in carrying out its activities, in terms of financial risk or operational risk. In a uncertain economic situation, risk management is one way to reduce and handle anything risk that the company might face. This study aims to analyze managerial influences ownership, ownership of domestic institutions, ownership of foreign institutions, public company ownership and size in risk management disclosures. The population used here is secondary data from Indonesia stock exchange (IDX), which is an annual report manufacturing companies registered in the period 20142018. Sample study using purposive sampling and final data consisting of 189 companies. Statistics method used is multiple regression analysis (MRA), hypothesis testing with the t test and the F test. The results of this study indicate that (1) managerial ownership has no effect on risk management disclosure (2) ownership of domestic institutions affects disclosure risk management (3) ownership of fore...

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