by
Teoh Ai Ping, Universiti Sains Malaysia
Wednesday, May 14, 2014 | 3:00pm - 4:30pm | Room 311, HSBC Business School Building
Abstract
Enterprise Risk Management (ERM) is an integrated, enterprise-wide approach in assessing the risks that possibly impact a firm‘s ability to achieve its corporate objective thus enabling firm to effectively deal with risks or opportunities occurred. As a result, the traditional risk management model has been replaced by an enterprise-wide view of risk rapidly, as Board of Directors and top management of the firm have begun to focus on the ERM function. The roles and responsibilities of Board of directors in organization governance and performance have expanded with regards to ERM. This study examines the relationship between ERM implementation to firm performance, and the moderating role of the Board of Directors’ monitoring in this relationship. The ERM implementation was interpreted based on elements in COSO (2004) ERM Integrated Framework, and firm performance was measured by financial and non-financial indicators. The study established that ERM implementation has significant influence on the firm performance. In addition, monitoring by board of directors is found to significantly influence the relationship between ERM implementation to firm performance.
