Governance and Risk Management: Empirical Evidence from Malaysia and

Rahman, Rashidah Abdul; Noor, Siti Balqis; Ismail, Tariq H.

doi:10.20525/.v2i3.152

Cited by 4 publications

(2 citation statements)

References 17 publications

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“…On the other hand, risk management is one of the principal aspects of corporate governance, and the responsibility to ensure its effective implementation chiefly lies with the board of directors (Abdul Rahman et al, 2013). The risk in finance literature is commonly measured in terms of systematic, unsystematic or total risk.…”

Section: Conceptual Frameworkmentioning

confidence: 99%

Corporate governance and risk management: a systematic review and synthesis for future research

Kalia

Gill

2023

JAMR

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PurposeThe world economy has experienced several economic downturns, and each phase emphasised that no industry is immune to inappropriate risk-management practices. Against the backdrop of the recent COVID-19 pandemic, which had far more effects than a financial crisis, the existing paper reviewed the state of current research in the realm of corporate governance and risk-management practices.Design/methodology/approachThis study rigorously followed a systematic approach in identifying, selecting and critically synthesising the existing literature on corporate governance and risk management. The review was carried out on the Web of Science and Scopus database until December 31, 2022. In total, 72 research works were examined and reviewed.FindingsThis systematic literature review showed that companies with strong governance mechanisms are less exposed to corporate risks. Several attributes, such as higher institutional ownership stakes, concentrated family ownership structures, lower CEO compensation and duality, higher presence of females in the management, better board dynamics in terms of independent boards and gender diversity are all strong mechanisms for mitigating risk. Additionally, socially responsible companies are better positioned to mitigate corporate risks. Furthermore, several themes emphasising the governance risk link have been identified to understand this domain further.Originality/valueBy analysing and synthesising existing corporate governance and risk-management themes, this study ascertained various research gaps that can be addressed in future studies. Furthermore, drawing on this paper's essential cues, researchers can significantly differentiate their work from existing ones in the field.

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Section: Conceptual Frameworkmentioning

confidence: 99%

Corporate governance and risk management: a systematic review and synthesis for future research

Kalia

Gill

2023

JAMR

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“…and there is asymmetric information (Ardiansyah, 2014). Therefore, the ability to properly understand, identify, assess, analyze, control, and monitor risk is needed to contribute to the risk management process (Rahman et al, 2013). In particular, the more risks a bank dares to take, the higher the profit opportunities it will get.…”

Section: Risk Profilementioning

confidence: 99%

Untitled

2023

Ekspansi

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The emergence of COVID-19 as a global pandemic has had an impact on slowing economic growth which has also affected regional financial and banking stability in East Kalimantan. This study aims to describe the results of measuring the performance of Islamic Commercial Banks using the risk profile, earning, and capital method. The research population is Islamic banks operating in the Samarinda area of East Kalimantan, and the selection of the research sample is purposive sampling. The data analysis method in this study uses descriptive statistical analysis. The results of the study show that the measurement in terms of the risk profile aspect shows an average rating of 2 "Good" and 3 "Fair enough". While the average rating on the FDR ratio is rated 2 "Good", rating 3 is "Enough Good" and rating 1 is "Very Good". Furthermore, in terms of the aspect of earning assessment by looking at the ROA, ROE, and BOPO ratios after being ranked, the results show that ROE and BOPO ratios rank 4 and 5 while NOM is ranked 1, while the ROA ratio continues to fluctuate from rank 1 to rank 5, meaning that bank performance Sharia law differs in generating returns on assets. This becomes a note, as well as opportunities and challenges for banks to be able to compete with other banks. Furthermore, in terms of aspects of capital assessment as a whole, it is rated "Very Good" which means that it has met the standards set by Bank Indonesia and the Financial Services Authority.

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Impact of risk governance on performance and capital requirements: Evidence from Egyptian banks

Ismail

Ahmed

2022

COC

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This study aims to examine the impact of banks’ risk governance (RG) on Egyptian listed banks’ performance and capital requirements as prescribed in Basel regulations. Secondary data from annual reports of all twelve banks listed on the Egyptian Stock Market (EGX) over eleven years (2010–2020) are analyzed using the dynamic ordinary least squares method; where the RG framework is presented by the proxy of the presence of chief risk officer (CRO), risk committee (RC), and audit committee (AC) characteristics. Secondary data from annual reports of all twelve banks listed on the EGX over eleven years are analyzed using the dynamic ordinary least squares method. The results support the role of banks’ RG in improving banks’ both market-based and accounting-based performance. These findings support the importance of having an independent risk committee and a powerful CRO because they can regulate banks’ increasing risk and acquire the advantages of capital requirements by investing assets in more profitable ways with low risk. This paper is one of the few empirical attempts in emerging economics to link bank RG, risk-taking behavior, performance, and capital adequacy ratio (CAR) as defined by Basel III.

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Governance and Risk Management: Empirical Evidence from Malaysia and

Cited by 4 publications

References 17 publications

Corporate governance and risk management: a systematic review and synthesis for future research

Corporate governance and risk management: a systematic review and synthesis for future research

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Impact of risk governance on performance and capital requirements: Evidence from Egyptian banks

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