Enterprise Risk Management and Firm Performance

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

“…In, yet, another study by Quon et al (2012), the researchers examined how ERM implementation affected selected financial performance measures of firms, but failed to find significant evidence of any association between ERM implementation and financial performance. In a more recent study, Ramlee et al (2015) compared the relationship between ERM implementation and performance of firms, but failed to obtain significant evidence of any relationship.…”

“…The growing interest in ERM has been attributed to a series of challenges in the business world ranging from global financial crises, corporate frauds and scandals, as well as the collapse of major corporate entities (Quon et al, 2012). This has prompted governments, law making bodies, regulators and other stakeholders within the global economic community to explore further insight and understanding of current and emerging risks facing organizations (Paape et al, 2012).…”

Strategic Risk Management

“…also used S&P's ERM rating as an ERM proxy and found a statistically significant positive relationship between ERM rating and firm performance in insurance and banking firms. Quon, Zeghal, and Maingot (2012) measured ERM adoption by the level of risk assessment reported in annual reports and financial statements and did not find an effect on performance. The result of a study by Grace et al (2014) shows that firms that put more emphasis on a combination of ERM-related activities (including weight on a simple economic capital model, having a dedicated risk manager or risk management team, and risk managers reporting to the board) reaped the benefits of an improved cost and revenue efficiency.…”

“…A few studies have shown a positive relationship (Eckles, Hoyt, and Miller, 2014;Grace, Leverty, Phillips, and Shimpi, 2014;, others find no beneficial effects (Pagach and Warr, 2010;Quon, Zeghal, and Maingot, 2012;Sekerci, 2012), while Lin, Wen, and Yu (2011) show that it erodes firm value. Such inconsistencies raise questions about whether the anticipated beneficial effects of ERM can be realized.…”

An Empirical Study on the Relationship between Enterprise Risk Management and Corporate Value—From the Perspective of Top Executives Incentives

“…Gordon (2009) had constructed a variable of ERM implementation level which named ERMI index, and found that the impact of ERM to corporate performance is based on the various factors of ERM are in reasonable coordination. Tony K. Quon et al (2012) studies show that the risk management information cannot predicted or affect the consequence of enterprise performance. In addition, Rampini and Adriano (2014) studied the dynamic model of commodity price risk management, and pointed out that the benefits of ERM were very limited.…”