Enterprise risk management and firm value within China’s insurance industry
- Li, Qiuying, Wu, Yue, Ojiako, Udechukwu, Marshall, Alasdair, Chipulu, Maxwell
- Authors: Li, Qiuying , Wu, Yue , Ojiako, Udechukwu , Marshall, Alasdair , Chipulu, Maxwell
- Date: 2014
- Subjects: Enterprise risk management , Insurance industry - China
- Type: Article
- Identifier: uj:5427 , http://hdl.handle.net/10210/11954
- Description: Orientation: The article discusses the relationship between enterprise risk management (ERM) and firm value. Research purpose: The purpose of the study is to empirically examine the relationship between ERM and firm value. The study is undertaken within the context of the Chinese insurance industry. Motivation for the study: Recent attempts to link ERM with firm value have been undertaken primarily in the USA and Europe and have produced ambiguous and inconclusive findings. Research design, approach and method: Data was obtained from the China Insurance Regulatory Commission, a government body responsible for regulating insurance products and services in China. The data sample consisted of 135 insurance companies operating in China (in 2010). Regression modelling is employed to analyse the data. Main findings: The results show the relationship between ERM and firm value at first appears statistically significant within a Pearson correlation matrix but then falls below statistical significance on closer scrutiny through regression analysis. Accordingly, it is recommended that insurers in China should not look to aggressive investment in ERM as a strategy for producing quick gains in firm value. Practical/managerial implications: Risk managers should plan ERM development from a risk management maturity perspective, which equates the highest level of ERM development with ERM’s capacity to improve firm resilience to the unknown and serve as a mechanism for strategic decision-making. Contribution/value-add: The study employed return on equity as a proxy for firm value, utilising ordinary least squares regression modelling to test propositions of the relationships between variables.
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- Authors: Li, Qiuying , Wu, Yue , Ojiako, Udechukwu , Marshall, Alasdair , Chipulu, Maxwell
- Date: 2014
- Subjects: Enterprise risk management , Insurance industry - China
- Type: Article
- Identifier: uj:5427 , http://hdl.handle.net/10210/11954
- Description: Orientation: The article discusses the relationship between enterprise risk management (ERM) and firm value. Research purpose: The purpose of the study is to empirically examine the relationship between ERM and firm value. The study is undertaken within the context of the Chinese insurance industry. Motivation for the study: Recent attempts to link ERM with firm value have been undertaken primarily in the USA and Europe and have produced ambiguous and inconclusive findings. Research design, approach and method: Data was obtained from the China Insurance Regulatory Commission, a government body responsible for regulating insurance products and services in China. The data sample consisted of 135 insurance companies operating in China (in 2010). Regression modelling is employed to analyse the data. Main findings: The results show the relationship between ERM and firm value at first appears statistically significant within a Pearson correlation matrix but then falls below statistical significance on closer scrutiny through regression analysis. Accordingly, it is recommended that insurers in China should not look to aggressive investment in ERM as a strategy for producing quick gains in firm value. Practical/managerial implications: Risk managers should plan ERM development from a risk management maturity perspective, which equates the highest level of ERM development with ERM’s capacity to improve firm resilience to the unknown and serve as a mechanism for strategic decision-making. Contribution/value-add: The study employed return on equity as a proxy for firm value, utilising ordinary least squares regression modelling to test propositions of the relationships between variables.
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An analysis of risk management within the Department of Trade and Industry (DTI)
- Carmen, Joel, Vyas-Doorgapersad, Shikha
- Authors: Carmen, Joel , Vyas-Doorgapersad, Shikha
- Date: 2019
- Subjects: Corruption , Department of Trade and Industry (DTI) , Enterprise risk management
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/296418 , uj:32294 , Citation: Carmen, J. & Vyas-Doorgapersad, S. 2019. An analysis of risk management within the Department of Trade and Industry (DTI).
- Description: Abstract: Risk management entails resources, planning, arranging and controlling to reduce the impact of possible risks to a manageable level. The objective of the article is to determine how the Department of Trade and Industry (DTI) implements risk management to achieve the objectives of its mandate as set out in its strategic plan, ultimately creating an ethical environment by reducing fraud. The methodology is based on a qualitative research design, using triangulation of an embedded case study with specific dimensions of unobtrusive research techniques, such as conceptual and document analysis. The Enterprise Risk Management (ERM) system is closely linked to the DTI’s risk management policy and risk management strategy objectives. The Risk Management Implementation Plan (RMIP) and the risk register, as well as the implementation of the risk management process, are instrumental in the successful risk management strategy of the DTI. The findings indicate that risk dialogue, communication, awareness, and understanding of the organisation and its risks, should be encouraged; that risk reporting practices should be strengthened, and that a better alignment between risk management and the DTI’s strategic objectives should be established.
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- Authors: Carmen, Joel , Vyas-Doorgapersad, Shikha
- Date: 2019
- Subjects: Corruption , Department of Trade and Industry (DTI) , Enterprise risk management
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/296418 , uj:32294 , Citation: Carmen, J. & Vyas-Doorgapersad, S. 2019. An analysis of risk management within the Department of Trade and Industry (DTI).
- Description: Abstract: Risk management entails resources, planning, arranging and controlling to reduce the impact of possible risks to a manageable level. The objective of the article is to determine how the Department of Trade and Industry (DTI) implements risk management to achieve the objectives of its mandate as set out in its strategic plan, ultimately creating an ethical environment by reducing fraud. The methodology is based on a qualitative research design, using triangulation of an embedded case study with specific dimensions of unobtrusive research techniques, such as conceptual and document analysis. The Enterprise Risk Management (ERM) system is closely linked to the DTI’s risk management policy and risk management strategy objectives. The Risk Management Implementation Plan (RMIP) and the risk register, as well as the implementation of the risk management process, are instrumental in the successful risk management strategy of the DTI. The findings indicate that risk dialogue, communication, awareness, and understanding of the organisation and its risks, should be encouraged; that risk reporting practices should be strengthened, and that a better alignment between risk management and the DTI’s strategic objectives should be established.
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Analysing the human capital capabilities in the enterprise risk management function of South Africa’s public institutions
- Authors: Moloi, Tankiso
- Date: 2018
- Subjects: Enterprise risk management , Human capital , Public sector
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/278361 , uj:29869 , Citation: Moloi, T. (2018). Analysing the human capital capabilities in the enterprise risk management function of South Africa’s public institutions. Business and Economic Horizons, 14(2), 375-388. http://dx.doi.org/10.15208/beh.2018.27 , ISSN: 1804-5006
- Description: Abstract: The weak control environment in South Africa’s public sector has, in the past, resulted in high levels of irregular, fruitless and wasteful, and unauthorised expenditure. In order to make a contribution to the discourse of mechanisms that could be deployed to reduce high levels of irregular, fruitless and wasteful, and unauthorised expenditure, this study analysed the capabilities of the human capital deployed in South Africa’s public sector. Together with the National Treasury in the Office of the Accountant General, a questionnaire was designed and administered to the public institution’s Chief Risk Officers in the first quarter of 2017. The findings of the study are that inadequate risk management processes and ineffective practices that are partly responsible for the weak control environment in public institutions, could also be attributed to the capabilities of the human capital deployed in enterprise risk management functions. In this regard, the study found that some of the reasons for the inadequate risk management processes and ineffective practices stemmed from: the inadequate staffing of the enterprise risk management function; positions not being filled by candidates with adequate academic qualifications and experience; the time it takes to fill a vacant position; and inadequate budget allocations. When institutions address risk maturity, policies, processes, and practices, focus must simultaneously be directed to the human capabilities deployed within the risk management function.
- Full Text:
- Authors: Moloi, Tankiso
- Date: 2018
- Subjects: Enterprise risk management , Human capital , Public sector
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/278361 , uj:29869 , Citation: Moloi, T. (2018). Analysing the human capital capabilities in the enterprise risk management function of South Africa’s public institutions. Business and Economic Horizons, 14(2), 375-388. http://dx.doi.org/10.15208/beh.2018.27 , ISSN: 1804-5006
- Description: Abstract: The weak control environment in South Africa’s public sector has, in the past, resulted in high levels of irregular, fruitless and wasteful, and unauthorised expenditure. In order to make a contribution to the discourse of mechanisms that could be deployed to reduce high levels of irregular, fruitless and wasteful, and unauthorised expenditure, this study analysed the capabilities of the human capital deployed in South Africa’s public sector. Together with the National Treasury in the Office of the Accountant General, a questionnaire was designed and administered to the public institution’s Chief Risk Officers in the first quarter of 2017. The findings of the study are that inadequate risk management processes and ineffective practices that are partly responsible for the weak control environment in public institutions, could also be attributed to the capabilities of the human capital deployed in enterprise risk management functions. In this regard, the study found that some of the reasons for the inadequate risk management processes and ineffective practices stemmed from: the inadequate staffing of the enterprise risk management function; positions not being filled by candidates with adequate academic qualifications and experience; the time it takes to fill a vacant position; and inadequate budget allocations. When institutions address risk maturity, policies, processes, and practices, focus must simultaneously be directed to the human capabilities deployed within the risk management function.
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