It is interesting to note that Enterprise Risk Management (ERM) as a new concept of managing risks holistically, is relatively new in Malaysia. Nevertheless, such a concept has been gaining ground over the past years and the overall scenario seems to be changing for the better. While the ERM concept is expected to enhance shareholders value, many more business entities appear to be interested in adopting and implementing ERM. Although the ERM concept receives much attention from businesses and industries in Malaysia, in practice, the overall development and practical application of ERM has been rather limited.
Importantly, scholarly research activities in this particular area of interest are totally lacking hence the essential need for this empirical study. Such a study incorporates an industry survey which comprises twenty eight Government Linked Companies (GLCs) in Malaysia.
Enterprise Risk Management (ERM) as an increasingly popular concept in this part of the world is indeed a relatively new term that is catching much attention among businesses and industries today as it is viewed as the ultimate approach to effective Risk Management. In a practical sense, ERM is designed to increase the boards and senior management’s ability to oversee the overall portfolio of risks facing an enterprise. ERM also provides a significant source of competitive advantage for those who can demonstrate a strong ERM capability and strength.
However, evidence shows that the ERM concept is still not widely practiced in Malaysia despite having received much attention over the past years. It is rather important to note that scholarly research and empirical evidence in relation to the determinants of such a concept is obviously lacking. Equally important, it must be highlighted that several reasons have been cited for the companies’ non-involvement in ERM program. The reasons include organizational structure that are not conducive to ERM, individuals who do not want to give up their specific responsibilities, a lack of understanding in respect of how to effectively
implement ERM and measure the benefits, and also difficulties in measuring risks and correlations across risks within the company.
Bifrost Tech - www.bifrostech.com - Malaysia GLC ERM Consulting Company
Importantly, scholarly research activities in this particular area of interest are totally lacking hence the essential need for this empirical study. Such a study incorporates an industry survey which comprises twenty eight Government Linked Companies (GLCs) in Malaysia.
Enterprise Risk Management (ERM) as an increasingly popular concept in this part of the world is indeed a relatively new term that is catching much attention among businesses and industries today as it is viewed as the ultimate approach to effective Risk Management. In a practical sense, ERM is designed to increase the boards and senior management’s ability to oversee the overall portfolio of risks facing an enterprise. ERM also provides a significant source of competitive advantage for those who can demonstrate a strong ERM capability and strength.
However, evidence shows that the ERM concept is still not widely practiced in Malaysia despite having received much attention over the past years. It is rather important to note that scholarly research and empirical evidence in relation to the determinants of such a concept is obviously lacking. Equally important, it must be highlighted that several reasons have been cited for the companies’ non-involvement in ERM program. The reasons include organizational structure that are not conducive to ERM, individuals who do not want to give up their specific responsibilities, a lack of understanding in respect of how to effectively
implement ERM and measure the benefits, and also difficulties in measuring risks and correlations across risks within the company.
Bifrost Tech - www.bifrostech.com - Malaysia GLC ERM Consulting Company
