Developing an Enterprise Risk Management Value Enhancing Model Manifested through Economic Value Added

• Main Authors: Shad, Muhammad Kashif, Lai, Fong Woon
• Format: Conference or Workshop Item
• Published: 2015
• Online Access: http://eprints.utp.edu.my/11720/1/Developing%20an%20Enterprise%20Risk%20Management%20Value%20Enhancing%20Model%20Manifested%20through%20Economic%20Value%20Added.pdf; http://eprints.utp.edu.my/11720/

Enterprise Risk Management (ERM) is an essential technique used to manage myriad of risks in a holistic manner. This paper espouses an ERM implementation framework which encompasses three dimensions, seven areas which in turn are operationalized by fourteen elements. This paper also empirically examines the impact of ERM towards the firm’s performance measured through Economic Value Added (EVA) analysis. The research design incorporates descriptive and cross sectional analysis. Results of the empirical analysis show that ERM implementation does have a significant positive impact on firm performance. The results support the hypotheses that firm’s which implements ERM will have higher performance as manifested through the EVA analysis.