Enterprise Risk Management, Determinants and Value of Its Implementation

Document Type : Research Paper

Authors

1 Associate Professor of Accounting, Shahid Bahonar University of Kerman

2 Master of Accounting from Shahid Bahonar University of Kerman

Abstract

  The purpose of this study is to review the literature on enterprise risk management (ERM), determinants ofthistype ofrisk managementand effectiveness of its implementation. ERM as a process that combines all activities related to risk management in one integrated system and holistic framework. Collecting information regarding the existence and implementation of ERM is an importantchallenge in research related to this type of risk management. Previous research review showedthat in moreempirical research the presence of a chief risk officer is sign as ERM implementation within institutions. Also characteristics such as size and institutional ownership < /span> has a positive and significant relationship < /span> with the ERM implementation and adoption of ERM has a positive impact on shareholder value and firm performance. 

Keywords

References

پور زمانی، زهرا و کریمی، علی. (1389). تأثیر مدیریت موثر ریسک و سرمایه­های فکری بر سطح عملکرد شرکت‌ها. مجله مطالعات مالی، دوره سوم، شماره­ ششم، ص18-1.
تاری­وردی، یداله، دامچی­جلودار، زهرا. (1391). رابطه مدیریت ریسک بر عملکرد شرکت. تحقیقنامه حسابداری مالی و حسابرسی، سال سوم، شماره­ چهاردهم، ص62-43.
رشیدی، رامین. (1389). از مدیریت ریسک تا مدیریت ریسک شرکتی. ماهنامه تازه­های جهان بیمه، شماره­ 146، ص36-27.
Altuntas, M. , Berry-Stölzle, T. R. , and Hoyt, R. E. (2011). Implementation of Enterprise Risk Management: Evidence from the German Property-Liability Insurance Industry. Geneva Papers on Risk & Insurance - Issues and Practic, 36 (3) , 414-439.
Beasley, M. , Branson, B. , and Hancock, B. (2009). Report on the Current State of Enterprise Risk Oversight, ERM Initiative at North Carolina State University, Raleigh.
Beasley, M. , Branson, B. , and Hancock, B. (2010). COSO’s Report on ERM - Current State of Enterprise Risk Oversight and Market Perceptions of COSO’s ERM Framework. ERM Initiative at North Carolina State University, Raleigh.
Beasley, M. , Clune, R. , and Hermanson, D. (2005). Enterprise Risk Management: An Empirical Analysis of Factors Associated with the Extent of Implementation. Journal of Accounting and Public Policy 24 (6) , 521-531.
Beasley, M. , Pagach, D. , and Warr, R. (2008). Information Conveyed in Hiring Announcements of Senior Executives Overseeing Enterprise-Wide Risk Management, Journal of Accounting, Auditing and Finance, 23 (3) , 311-332.
Colquitt, L. L. , Hoyt, R. E. , and Lee, R. B. (1999). Integrated Risk Management and the Role of the Risk Manager. Risk Management and Insurance Review 2 (3). 43-61.
Eckles, D, Hoyt, R, and Miller, S. (2014). The impact of enterprise risk management on the marginal cost of reducing risk: Evidence from the insurance industry. Journal of Banking & Finance, V (43) , 247-261.
Gatzert, N. , and Martin, M. (2013). Determinants and Value of Enterprise Risk Management: Empirical Evidence from the Literature. Working Paper, Friedrich Alexander University, Nurnberg.
Golshan, N. M. , and Rasid, S. A. (2012). Determinants of Enterprise Risk Management Adoption: An Empirical Analysis of Malaysian Public Listed Firms. International Journal of Social and Human, Sciences 6, 119-126.
Gordon, L. , Loeb, M. , and Tseng, C. (2009). Enterprise Risk Management and Firm Performance: A Contingency Perspective. Journal of Accounting and Public Policy, 28 (4) , 301-327.
 Grace, M. , Leverty, J. , Phillips, R. , and Shimpi, P. (2010). The Value of Investing in Enterprise Risk Management, Working Paper, Georgia State University and University of Iowa.
Hoyt, R. E. , and Liebenberg, A. P. (2008). The Value of Enterprise Risk Management: Evidence from the U. S. Insurance Industry, Society of Actuaries, ERM Monograph Paper, available at http: //www. soa. org, accessed 07/01/2013.
Hoyt, R. E. , and Liebenberg, A. P. (2011). The Value of Enterprise Risk Management. Journal of Risk and Insurance, 78 (4) , 795-822.
Kleffner, A. E. , Lee, R. B. , and McGannon, B. (2003). The Effect of Corporate Governance on the Use of Enterprise Risk Management: Evidence from Canada. Risk Management Insurance Review, 6 (1) , 53-73.
Liebenberg, A. P. , and Hoyt, R. E. (2003). The Determinants of Enterprise Risk Management Evidence from the Appointment of Chief Risk Officers. Risk Management and Insurance Review, 6 (1) , 37-52.
McShane, M. K. , Nair, A. , and Rustambekov, E. (2011). Does Enterprise Risk Management Increase Firm Value?. Journal of Accounting, Auditing & Finance, 16 (4) , 641-658.
Meulbroek, L. M. (2002). Integrated Risk Management for the Firm: A Senior Manager’s Guide. Journal of Applied Corporate Finance, 14 (1) , 56-70.
Pagach, D. , and Warr, R. (2010). The Effects of Enterprise Risk Management on Firm Performance. Working Paper, North Carolina State University, Raleigh.
Pagach, D. , and Warr, R. (2011). The Characteristics of Firms that Hire Chief Risk Officers. Journal of Risk and Insurance, 78 (1) , 185-211.
Rochette, M. (2009). From Risk Management to ERM. Journal of Risk Management in Financial Institutions, 2 (4) , 394-408.
Tahir, I. M. , and Razali, A. R. (2011). The Relationship between Enterprise Risk Management and Firm Value: Evidence from Malaysian Public Listed Companies. International Journal of Economics and Management Sciences. 1 (2) , 32-41.
Thiessen, K. , Hoyt, R. E. , Merkley, B. M. (2001). A Composite Sketch of a Chief Risk Officer. The Conference Board of Canada, Ottawa, Canada.
 
 

Files

History

  • Receive Date: 13 May 2015
  • Revise Date: 28 April 2016
  • Accept Date: 26 July 2015

Share

How to cite

Statistics