Enterprise Risk Management Program Quality: Determinants, Value Relevance, and the Financial Crisis

2011 ◽  
Author(s):  
Ryan J. Baxter ◽  
Jean C. Bedard ◽  
Rani Hoitash ◽  
Ari Yezegel
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
Value Relevance ◽  
Management Program ◽  
Enterprise Risk Management ◽  
Program Quality ◽  
Enterprise Risk ◽  
Risk Management Program

scholarly journals ANALISIS FIRM VALUE PADA PERUSAHAAN YANG MENERAPKAN ENTERPRISE RISK MANAGEMENT (ERM)

2016 ◽  
Vol 1 (3) ◽  
pp. 118
Author(s):  
Ahmad Zaky ◽  
Mukaram Mukaram
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
Firm Value ◽  
Financial Sector ◽  
The United States ◽  
Enterprise Risk Management ◽  
Potential Growth ◽  
Enterprise Risk ◽  
Significant Difference ◽  
The Impact

A risk is not an odd thing which is encountered in the business activities. Therefore, risk management is becoming a serious concern within the company. To anticipate the impact of risk on the company and in order to create the Firm Value, Enterprise Risk Management (ERM) has been developed. ERM is not just aimed at the creation of value for the company, ERM is believed to be able to manage the risks facing the company better and integrated through the business organization. However, in 2008, the financial crisis in the United States become consideration of the impact of the implementation of ERM in the firm, particularly in the financial sector. An unsuccessful management of the firms in the financial sector could have a major impact on the economy of a country that resulted in the financial crisis occurred and many of those who argue that this is due to an irrelevant and improper implementation of ERM. In order to examine this, this research conducted on the financial sector in Indonesia, especially the listed banking companies in Indonesia Stock Exchange. In this study, the samples are 37 banking firms listed on Indonesia Stock Exchanges to examining the differences Firm Value means between the banking firms which implement ERM and banking firm which do not implement ERM. The Results show that among the bank companies, there is no significant difference of the magnitude of the Firm Value of an existing company. In essence, the financial sector especially the banking industry in Indonesia, the implementation of ERM is not an appropriate solution of efforts to increase the value of the firm in order to increase the potential growth of the investment.

scholarly journals The effect of the financial crisis on risk disclosures: a comparative study of U.S. and Canadian corporations

2014 ◽  
Vol 11 (3) ◽  
pp. 447-458 ◽  
Author(s):  
Michael Maingot ◽  
Tony Quon ◽  
Daniel Zéghal
Keyword(s):  
Risk Management ◽  
Content Analysis ◽  
Financial Crisis ◽  
Enterprise Risk Management ◽  
Annual Reports ◽  
Energy Materials ◽  
2008 Financial Crisis ◽  
Enterprise Risk ◽  
The 2008 Financial Crisis ◽  
Risk Disclosures

The effect of the financial crisis on enterprise risk management (ERM) disclosures was examined through a content analysis of the 2007 and 2008 annual reports of S&P 500 and S&P- TSX Composite companies in the energy, materials, industrials, and consumer discretionary sectors. Fourteen types of risk were tracked and categorized. The total number of risk disclosures by S&P 500 companies hardly increased at all from 2007 to 2008, while the total number of risk disclosures by TSX companies increased slightly. Overall, the 2008 financial crisis has not had a major impact, if any, on risk disclosures by major non-financial U.S. and Canadian corporations

scholarly journals Enterprise Risk Management and firm performance: an integrated model for the banking sector

2017 ◽  
Vol 12 (2) ◽  
pp. 116-123 ◽  
Author(s):  
Alaa Soliman ◽  
Mukhtar Adam
Keyword(s):  
Risk Management ◽  
Firm Value ◽  
Banking Sector ◽  
Integrated Model ◽  
Management Program ◽  
Enterprise Risk Management ◽  
Share Price ◽  
Enterprise Risk ◽  
Main Independent Variable ◽  
And Performance

This study investigates how the implementation of Enterprise Risk Management program affects the performance of firms using an Enterprise Risk Management model for the banking sector and an integrated model for measuring Enterprise Risk Management index used in the study by Mukhtar and Soliman (2016). Ten listed commercial banks were selected with the Enterprise Risk Management index as the main independent variable, with Return on Average Equity (ROAE), Share Price Return (SPR) and Firm Value (FV) used as three separate dependent variables. The study provides strong evidence of a positive relationship between Enterprise Risk Management implementation and performance in the Nigerian banking sector. The findings and conclusions of this study are consistent with those of other studies that used data from different industries, providing a basis from which to generalize the findings from this study to firms in other industries.

scholarly journals The Impact of the Adoption of Enterprise Risk Management on the Industrial Financial Performance

2017 ◽  
Vol 6 (6) ◽  
pp. 9-20
Author(s):  
Kingsley Karunaratne Alawattegama
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Firm Value ◽  
Positive Impact ◽  
Value Relevance ◽  
Secondary Data ◽  
Enterprise Risk Management ◽  
Integrated Framework ◽  
Enterprise Risk ◽  
The Impact

Enterprise risk management (ERM) has gained an increased attention during the recent past as an integrated approach to manage risk for creating and preserving firm value. The objective of this study is to explore and empirically verify as to whether the adoption of the ERM has an impact on the firm performance. This study uses both primary and secondary data pertaining to 129 companies listed on the Colombo Stock Exchange under the banking & finance, insurance, diversified, manufacturing, food and beverage and chemical and pharmaceutical sectors. Primary and secondary data are collected by distributing a survey questionnaire and analyzing the published financial statements of the observing companies. Researcher adopts ERM integrated framework suggested by the committee of sponsoring organization (COSO) of the Treadway Commission of the USA to assess the value relevance of ERM and uses return on equity (ROE) as a proxy to measure the firm performance. This study finds, except for control activities, none of the key ERM functions, suggested by the COSO’s ERM integrated framework, has a significant impact on the performance of listed companies. Internal environment, objective setting, and information & communication indicated a weak positive impact on the firm performance. Nevertheless, none of those impacts were statistically significant. Empirical evidence reveals that firms’ risk responding strategies have no impact on the performance. Surprisingly, monitoring of ERM functions has weak negative, but not significant, impact on the firm performance. These findings are contradictory with the theoretical expectation that the adoption of ERM practices has a positive impact on firm performance as confirmed by the prior researchers.

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