Enterprise Risk Management Practices among Malaysian Firms

Soltanizadeh, Sara; Rasid, Siti Zaleha Abdul; Golshan, Nargess; Quoquab, Farzana; Basiruddin, Rohaida

doi:10.1016/j.sbspro.2014.11.084

Cited by 25 publications

(19 citation statements)

References 12 publications

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“…Operating ERM can improve risk awareness in a corporate and consequently improves the decision-making process resulting in firm value maximization (Razali et al, 2011;Braumann, 2018). Even with these advantages of ERM adoption, several firms have yet to adopt it (Beasley et al, 2005;Soltanizadeh et al, 2014). ERM is a moderately novel term that is rapidly regarded as the ultimate strategy to risk management.…”

Section: Descriptionmentioning

confidence: 99%

The Factors Influencing The Enterprise Risk Management Practices and Firm Performance in Jordan and Malaysia

Shatnawi

Eldaia

2020

IJRTE

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Future of uncertainty and risks in firm businesses and country-based economics remains continuous processes that need to be managed effectively and efficiently. Risks taking is a routine activity in all firms. Enterprise Risk Management (ERM) has now become an ultimate concern and a robust risk management approach in all financial and non-financial industries and other sectors throughout the globe. Firms are adopting ERM as a holistic strategy by putting its core components in practice to effectively manage all risks to protect the organizations and stakeholder value. The process of putting ERM into practice is only effective and efficient through identifying the factors that influence its practice in order to improve the firm performance. As a result of this reason, various factors influencing ERM were examined by different investigators as an indirect factor or as a parameter. However, only a few scholars studied it as a major factor or main objective, despite the risks remain a major issue influencing the goals of enterprises in all firm types in both Jordan and Malaysia. In order to fully consolidate the influencing factors on ERM practices, a comparative review of the available literature in Jordan and Malaysia were carried out to excavate the key influencing factors for direct identification in order to improve the firm performance. The factors identified were categorized into three groups; the management-based, firm-based, and ERMperformance-measurement-based factors. Each group of factors was found to influence the success of ERM strategies and practices in both Jordan and Malaysia. Jordan (Middle-East) and Malaysia (South-East Asia) shared a common characteristic of ERM adoptions and practices with regard to firm composition and risk management. Both countries are now pacing up to meet up with ERM practice challenges. Although, ERM still is a relatively new concept in several parts of Middle-East and SouthEast Asia. Though, Malaysia proved to have more improved and established ERM success factors and researches as compared to Jordan. Additionally, Malaysia was found to have more appeared ERM terms in the Board of Bursa Malaysia (BBM) Guidelines as well as ERM practices under different sectors from 2008 to 2018 compared to Jordanian Amman Stock Exchange (ASE). Thus, it appears that Malaysia has more robust ERM research works, adoptions, practices, and compliance system in place compared to what is obtainable in Jordan. In conclusion, firm managers in Jordan and Malaysia are highly recommended to use these ERM factors identified as strategic and to improve ERM practices in their organizations

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Section: Descriptionmentioning

confidence: 99%

The Factors Influencing The Enterprise Risk Management Practices and Firm Performance in Jordan and Malaysia

Shatnawi

Eldaia

2020

IJRTE

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“…Enterprise Risk Management in SMEs: Enterprise risk management (ERM) is a crucial aspect of corporate governance (Sprčić, Kožul, & Pecina, 2015) that supports businesses in predicting risks and establishing tradeoffs between costs and earnings (Zou & Hassan, 2015). By adopting ERM, enterprises are likely to identify possible risks and develop relevant controlling techniques (Soltanizadeh, Rasid, Golshan, Quoquab, & Basiruddin, 2014;Nocco & Stulz, 2006) aiming at managing risks and not eliminating them (Fadun, 2013). ERM involves all members of an organisation in developing strategies that identify and manage possible risks (Nocco & Stulz, 2006;COSO, 2004;Harner, 2010) particularly the strategic, operational, and financial risks (Harner, 2010;Zou & Hassan, 2015;Sprčić, Kožul, & Pecina, 2015) or other risks depending on the characteristics of the industry (Nocco & Stulz, 2006).…”

Section: Literature Reviewmentioning

confidence: 99%

Risk-Taking and Performance of Small and Medium-Sized Enterprises: Lessons from Tanzanian Bakeries

Jeje¹

2020

JEBS

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SMEs are the major drivers of socioeconomic development of many economies. In order to influence economic growth, SMEs must be capable of enhancing their competiveness, growth, and sustainability. These capabilities are acquired by SMEs that understand and adopt entrepreneurial strategies that work. There is abundant literature confirming that one of these entrepreneurial strategies include risk-taking practices. SMEs are still facing challenges to understand and apply the right risk-taking strategies that influence their performance. We therefore characterise risk-taking as risk planning, risk controlling, and strategic risk initiatives, and seek to establish their contribution on SME performance. This study draws lessons from the risk management practices of small and medium-sized bakeries in Tanzania where agriculture, a sector that directly relates with bakery business, is one of the leading sectors in driving economic growth. We adopt a multi-stage sampling technique and receive responses from 161 questionnaires, and 20 in depth interviews from bakery owners/managers throughout Tanzania. The principal component analysis, qualitative content analysis (manifest analysis), and the moderator analysis are used in analyzing these data. We ascertain that both the firm age, and the gender, of the owner/manager moderate the relationship between risk-taking strategies and SME performance. We argue that SMEs have the responsibilities of improving their risk-taking practices and capabilities in order to drive their competitiveness. Additionally, SMEs need to employ their efforts and resources in supporting their risk management initiatives, and integrate them in their business operations, and policy development practices, and ultimately advance their sustainability.

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“…Les approches traditionnelles de management des risques se concentraient sur la gestion des risques spécifiques aux processus, aux activités et aux unités de l'entreprise. Au-delà de ces approches dites ascendantes, le nouveau paradigme du management suppose l'appréhension des risques dans le cadre d'une approche globale et cohérente (Soltanizadeh et al 2014). Cette approche descendante permet d'élaborer un mapping synthétique des risques pour les dirigeants ; l'objectif étant d'avoir une vision générale sur les risques significatifs de l'entreprise.…”

Section: Définition Du Management Des Risquesunclassified

Le Management des risques dans les entreprises Tunisiennes Un état des lieux après la révolution

Arab¹,

Mardessi

2015

La Revue Gestion et Organisation

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Dispositif de management des risques Management global des risques Processus structuré Risques internes Risques externes Contexte tunisien R É S U M É Cet article dresse un état des lieux des entreprises tunisiennes en matière de management des risques. L'objectif étant de recenser les principaux risques relevés par ces entreprises et d'avoir une vue d'ensemble du dispositif de management des risques dans le contexte tunisien post-révolution.Les résultats relatifs à l'enquête menée auprès de 30 entreprises révèlent que les principaux risques internes concernent les problèmes psychosociaux du personnel, le risque d'insolvabilité des clients ainsi que la baisse de la demande. D'autres risques sont externes à l'entreprise et sont relatifs à l'augmentation des coûts et à l'existence des marchés parallèles.Les résultats montrent, également, que le dispositif de management des risques est plutôt informel et concentré sur l'analyse des risques spécifiques, hormis le cas des établissements de crédit qui semblent être mieux outillés en matière de management des risques.

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Enterprise Risk Management Practices among Malaysian Firms

Cited by 25 publications

References 12 publications

The Factors Influencing The Enterprise Risk Management Practices and Firm Performance in Jordan and Malaysia

The Factors Influencing The Enterprise Risk Management Practices and Firm Performance in Jordan and Malaysia

Risk-Taking and Performance of Small and Medium-Sized Enterprises: Lessons from Tanzanian Bakeries

Le Management des risques dans les entreprises Tunisiennes Un état des lieux après la révolution

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