The risk sphere in business is fast changing and expanding. Almost anything has become a risk factor that will have potent, direct, and far reaching impacts on business. This article examines the intensity of enterprise risk management (ERM) practices among the Malaysian public listed companies. The article spouses a ERM framework comprising fourteen important implementation elements and processes. Results of the analysis
indicate that the intensity of ERM implementation among the respondents is in the ‘good’ category of the semantic scale, which is deemed encouraging vis-à-vis the country’s regulatory regime.
In an age of frequent spates of terrorist incident occurrences, fierce global competition, economic shocks and corporate governance challenges, business risks have never been greater. This adverse environment compounded with an increasing number of high-profile corporate governance scandals have resulted in corporations facing huge amount of financial losses globally. In the aftermath of which have even threatened the solvency of the corporations concerned. A case in point is the recent United States financial meltdown in 2008 triggered by the sub-prime mortgage crisis had seen the tumbling of giant institutions like the Fannie Mae, Freddie Mac, Lehman Brothers, Merrill Lynch, and the American Insurance Group.
The consequences of the crisis were far reaching and crossboundary. Although it started out as the “sub-prime crisis” in the United States in 2007, the impacts mushroomed into a fullblown global recession in 2008 and the remnant effects of which could still be felt in 2010. These incidents have highlighted the urgent need for global corporate entities to put in place a strong and effective risk management mechanism
within their business models to ensure minimum loss and business continuity disruption in the event of similar incidents recurring. The aim of this paper is to examine how public listed companies (PLCs) in Malaysia perceive and manage those risks that emerge in their enterprises by examining the intensity of enterprise risk management practices among the PLCs.
Bifrost Tech - www.bifrostech.com - Malaysia GLC ERM Consulting Company
indicate that the intensity of ERM implementation among the respondents is in the ‘good’ category of the semantic scale, which is deemed encouraging vis-à-vis the country’s regulatory regime.
In an age of frequent spates of terrorist incident occurrences, fierce global competition, economic shocks and corporate governance challenges, business risks have never been greater. This adverse environment compounded with an increasing number of high-profile corporate governance scandals have resulted in corporations facing huge amount of financial losses globally. In the aftermath of which have even threatened the solvency of the corporations concerned. A case in point is the recent United States financial meltdown in 2008 triggered by the sub-prime mortgage crisis had seen the tumbling of giant institutions like the Fannie Mae, Freddie Mac, Lehman Brothers, Merrill Lynch, and the American Insurance Group.
The consequences of the crisis were far reaching and crossboundary. Although it started out as the “sub-prime crisis” in the United States in 2007, the impacts mushroomed into a fullblown global recession in 2008 and the remnant effects of which could still be felt in 2010. These incidents have highlighted the urgent need for global corporate entities to put in place a strong and effective risk management mechanism
within their business models to ensure minimum loss and business continuity disruption in the event of similar incidents recurring. The aim of this paper is to examine how public listed companies (PLCs) in Malaysia perceive and manage those risks that emerge in their enterprises by examining the intensity of enterprise risk management practices among the PLCs.
Bifrost Tech - www.bifrostech.com - Malaysia GLC ERM Consulting Company
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