Determinants and Value of Enterprise Risk Management: Empirical Evidence from the Literature

Gatzert, Nadine; Martin, Michael

doi:10.2139/ssrn.2321664

Cited by 39 publications

(45 citation statements)

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“…For two recent reviews of the empirical literature on the determinants and value impact of ERM in the insurance industry, see Kraus and Lehner () and Gatzert and Martin ().…”

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confidence: 99%

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The Combined Effect of Enterprise Risk Management and Diversification on Property and Casualty Insurer Performance

Ai¹,

Bajtelsmit²,

Wang³

2016

J of Risk & Insurance

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In a well‐designed enterprise risk management (ERM) program, the firm integrates risk management into the strategic planning process, addressing strategic, financial, operational, and hazard risks under a single overarching process. This is particularly important to large financial firms, such as property and casualty (P&C) insurers, which face a diverse set of risks. Using a sample of P&C insurers with S&P ERM quality ratings from 2006 to 2013, we find that the quality of a firm's ERM is a significant determinant of P&C insurer performance and that, for firms with high‐quality ERM programs, product line diversification has a significant positive effect on performance.

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“…For two recent reviews of the empirical literature on the determinants and value impact of ERM in the insurance industry, see Kraus and Lehner () and Gatzert and Martin ().…”

mentioning

confidence: 99%

“…Although we briefly overview the literature in this section, for a more complete discussion and comparison of previous studies, see Gatzert and Martin ().…”

mentioning

confidence: 99%

The Combined Effect of Enterprise Risk Management and Diversification on Property and Casualty Insurer Performance

Ai¹,

Bajtelsmit²,

Wang³

2016

J of Risk & Insurance

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show abstract

“…The adoption of ERM programs in organizations is generally attributed to a combination of internal and external variables in the corporate environment, and the success of their adoption is due to the dedication of key individuals, the support of senior leadership, and the participation of employees (Chapman, 2011;Gatzert & Martin, 2015). Internal influences (or "micro factors") describe the five sources of risk considered to be controllable by businesses (financial, operational, technological, projects, and business ethics).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Many firms choose to locate the ultimate responsibility for risk management directly at the senior executive level by appointing a CRO because this actor can influence and accelerate the process of ERM implementation (Gatzert & Martin, 2015).…”

Section: The Presence Of a Cromentioning

confidence: 99%

Determinants of the implementation of environmental risk indicators: Empirical evidence from the Italian manufacturing context

Lamboglia

Paolone

Mancini

2018

Corp Soc Responsibility Env

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This study analyzes the factors associated with the implementation of environmental risk indicators (ERIs) among organizations. According to studies that show the relevance of management accounting tools for managing risk, we measure the level of ERI implementation across organizations by analyzing the presence of environmental performance indicators in corporate social responsibility reports and on corporate web sites. The analysis is based on data gathered from 72 Italian listed manufacturing companies for the year 2015. The empirical findings suggest that ERI implementation is positively driven primarily by the following variables: the presence of a chief risk officer, the level of environmental risk score, and firm complexity. In contrast, the number of independent directors on the board does not affect ERI implementation.

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“…According Moeller (2007) the goal of building a risk management culture is to influence employees and other stakeholders to almost automatically consider risks in their decisions. Interesting conclusions about the determinants of risk management process provides study by Gatzert and Martin (2013).The results of their comparative assessment of the seven studies regarding the determinants of an ERM system are partly ambiguous. Regarding the determinants of ERM their findings show that while some determinants (assets' opacity, growth opportunities) are not significantly related to the development of an ERM system or are ambiguous regarding the direction (financial leverage), the company size and the level of institutional ownership are, in particular, identified in most studies as significant factors that positively affect the implementation of an ERM system.…”

Section: Source: Irm 2012mentioning

confidence: 99%

Leading Markers of Risk Culture in Organization

Gorzeń-Mitka¹

2018

EJSD

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Among the many assumptions about taking-risk widely embraced but rarely tested is the notion that large companies risk culture are less averse to risk than risk culture in the SMEs sector. Taking a multivariate markers of organizational culture, this study seeks to identify and to explain differences between theoretical and empirical aspects of risk culture. The concept of risk culture pertains to perceptions risks and promote risk-taking in organizations. I accept the assumption that organizational culture markers (indicated mainly based on research and opinion large companies) depends on the company size. Using questionnaire data from a variety of SMEs organizations, I find that there is considerable variance in theoretical and practical risk culture markers. I postulate that culture influences corporate risk-taking according organizational size. The primary purpose of this research is to contribute to the understanding of the risk culture markers in micro small and medium size enterprises. The research questions explore the differentiation between risk culture markers indicates in academic literature and markers indicates in empirical research. Theoretical considerations is supplemented by a results of the study in 269 Polish SMEs. Additional aim of this study is, at least partially, fill a gap on the organizational culture and risk management in SMEs.

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Determinants and Value of Enterprise Risk Management: Empirical Evidence from the Literature

Cited by 39 publications

References 0 publications

The Combined Effect of Enterprise Risk Management and Diversification on Property and Casualty Insurer Performance

The Combined Effect of Enterprise Risk Management and Diversification on Property and Casualty Insurer Performance

Determinants of the implementation of environmental risk indicators: Empirical evidence from the Italian manufacturing context

Leading Markers of Risk Culture in Organization

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