Risk Management Interconnections in Law, Accounting and Tax

Daelen, M.M.A. van; Elst, C.F. van der; Ven, A.C.N. van de

doi:10.4337/9781849807999.00013

Cited by 4 publications

(3 citation statements)

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“…They are business risk, operational risk, market risk, financial risk and legal risks etc. Therefore, risk management systems, must be able to cope with all these different types of risks (Daelen & Elst, 2010). Minton, Taillard and Williamson (2010) investigated how risk taking and performance of financial firms in a crisis situation is related to board independence and financial expertise of the board.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Over the last few years, this concept has been able to attract a great deal of public interest due to its apparent importance for the economic health of companies and society in both developed and developing countries in general. Moreover, the focus of the business community on corporate governance has moved towards internal control and risk management concerns with the recent financial crisis and company failures at the beginning of the millennium (Daelen & Elst, 2010).…”

Section: Introductionmentioning

confidence: 99%

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Corporate Governance Practices and Their Impacts on Corporate Risk: Evidence from Sri Lanka

Sameera

2020

Kelaniya J Manage

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The cost of failure of a single corporate has a fatal impact on the economy. In addition to the macro-economic conditions leading to corporate collapse, management is responsible for developing and implementing a sound system of risk management and internal control in order to avoid such collapses. As a result, discussions on governance and risk have reached an unprecedented level for academics and practitioners. Moreover, risk exposure and management are increasingly becoming the foremost functions of modern business enterprises. However research that integrates corporate governance and risk has been limited. This study examines therefore the impact of corporate governance practices on corporate risk of listed companies in the Colombo Stock Exchange in Sri Lanka. The Board structure, Board Independence and Board procedures were considered as independent variables, whereas, corporate risk as dependent variable. The corporate risk represented the financial, operational and market risks faced by the companies. Furthermore the study used data from a sample of 64 listed companies for 5 years from 2014 to 2018 and employ panel regression to uncover the relationship that exists between these variables. The independent sample t-tests was used to test whether there was a statistically significant difference exist between the corporate governance practices of distress and non-distress companies. The results show that the corporate governance practices of distress companies was significantly lower than that of non-distress companies. The findings of the regression results suggest that Board independence was significantly and negatively impact on corporate risk. However, Board structure and Board procedures have no significant impact on corporate risk. The study therefore, concludes that the increased representation of independent non-executive directors of the board contributed to the significant decrease of corporate risk.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Corporate Governance Practices and Their Impacts on Corporate Risk: Evidence from Sri Lanka

Sameera

2020

Kelaniya J Manage

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“…Improper management of risks can lead to corporate collapses with devastating results (Sigurjonsson, 2010) such as was experienced in the early 2000 financial crisis. Over the years, a holistic approach to risk management has been demanded (van Daelen & van der Elst, 2010) such as that offered by an ERM approach (Boultwood & Dominus, 2014). The Institute of Internal Auditors (IIA), in 2014, defined ERM as “a structured and continuous process across the whole organization for identifying, assessing, deciding on responses to and reporting on opportunities and threats that affect the achievement of its objectives.”…”

Section: Introductionmentioning

confidence: 99%

The role of internal audit in the risk management process: A developing economy perspective

Weekes-Marshall

2020

J Corp Accounting Finance

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Companies in developing economies have faced a myriad of risks. Many of them due to external related party exposures and the potential risks of associated contagion. The function of Internal Audit (IA) has emerged as a significant governance mechanism in the management of risk in developing countries. This exploratory study sought to identify the role of IA across the developing economy of Barbados. Based upon the results of an online survey administered to the Barbados chapter of the Institute of Internal Auditors (IIA), the paper examines IA involvement in the risk management process (RMP) of several types of companies. Findings reveal that IA is critical to the RMP and that it needs to be enhanced through improved risk education, exposure, and training, along with increased support from Audit Committee and Senior Management. The generalizability of the conclusions is however limited since the sample was drawn from a developing country. The paper adds to the existing literature as it highlights the challenges of IA as it develops in a developing economy while also dealing with their integration into the RM framework. Practical key takeaway from the paper suggests that (a) RM and the IAF are in a developmental stage primarily due to the need for increased exposure and understanding of international risks and best practices. This is especially since most companies maintain extensive international ties and are highly susceptible to contagion. (b) For an integrated RM system to be successful, the management of risk must be owned at all levels throughout the organization and not just at the Board of Directors and Executive Management, and (c) improved communication of roles and accountabilities especially for IA should be instituted to ensure proper diffusion of risk culture within the organization.

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Comparison of risk management regulation from a corporate governance perspective within the German and united states legal areas

Sassen¹

2014

JGR

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Risk management is one of the main corporate governance components or management tasks. This paper details a comparison of risk management regulation from a corporate governance perspective of listed stock corporations in Germany and the United States (U.S.). Obviously, there are differences and commonalities between the national legal norms and the regulatory levels of risk management in both countries. The comparison helps to understand different traditions and practices in terms of how significant corporate governance rules are for risk management. Therefore, this article intends to inspire future research on the regulation of risk management across different regions and explore the relevance of national interests in the regulation of risk management. A principal finding of the comparison is that the U.S. corporate governance system seems to be more strongly regulated than the German system. This results from the powerful and coordinating role of the U.S. Securities and Exchange Commission (SEC). Thus, the seemingly more liberal system of non-binding standards in the U.S. has a higher impact on the regulation of risk management than in Germany.

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Risk Management Interconnections in Law, Accounting and Tax

Cited by 4 publications

References 0 publications

Corporate Governance Practices and Their Impacts on Corporate Risk: Evidence from Sri Lanka

Corporate Governance Practices and Their Impacts on Corporate Risk: Evidence from Sri Lanka

The role of internal audit in the risk management process: A developing economy perspective

Comparison of risk management regulation from a corporate governance perspective within the German and united states legal areas

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