Reduction of Compliance Costs: An International Perspective

Paridon, Kees van; Jhagroe, Shivant

doi:10.1007/978-0-387-77678-1_2

Cited by 1 publication

(1 citation statement)

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“…Apart from these legal-origin considerations, there are other fundamental differences such as overall political-economic orientations of each of the countries (Paridon and Jhagroe, 2009), which lead to different interests of the respective regulators (Sassen, 2014). Since institutional structures vary between the German dual (two-tier) system and the US, and Australian monistic (one-tier) system, the goals and structure of the German social-market-economy approach [DCGK, chapter 1(Foreword)] might not require an identical policy approach as found within a liberal-welfare state such as the US or Australia (Paridon and Jhagroe, 2009). This coherence might particularly become obvious when considering the precautionary principle underlying a number of German policies (Majone, 2010).…”

Section: Discussion Of the Resultsmentioning

confidence: 99%

Regulation of enterprise risk management: a comparative analysis of Australia, Germany and the USA

Bledow

Sassen

Wei

2019

IJCM

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Enterprise risk management (ERM) has become a ubiquitous strategy, especially among international corporate governance regulations. This paper aims to examine the level of risk management regulation through an international comparison approach. Specifically, from a corporate governance perspective, we investigate the Australian risk management regulations and compare it to the regulations of the USA and Germany. We find clear differences in each country's approach, with the USA having the highest level of regulation, followed by Australia and finally Germany. This implies that the level of regulation depends on country-specific characteristics and that the strict regulations of the SOX have led to a high level of regulation. From a management perspective, it seems to be recommendable to harmonise the respective international regulations in order to provide multinational corporations with similar requirements across different countries. Accordingly, this paper proposes multilateral collaboration in harmonizing international ERM regulations in order to avoid that firms take unnecessary risks. As a consequence, this harmonization stabilizes in turn the global financial system.

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