Enterprise Risk Management in Germany

Grammenidis, Georgios; Hiebl, Martin R. W.

doi:10.1108/978-1-83867-245-420211003

Cited by 4 publications

(1 citation statement)

References 28 publications

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“…It is however at variance with studies by da Silva et al, (2019), Witjaksono & Sari, (2021, and others on one hand, and those of ), Shad et al, (2022, etc, on the other who found the effect of ERM on firm performance to be negative, and positive respectively at statistically significant levels. This finding should be of interest to the regulator as it aligns with those of previous studies that pointed at regulatory compliance as a catalyst for ERM adoption and the consequent tendency for superficial engagement (Adeyele & Maiturare, (2021), Grammenidis & Hiebl, (2021). ERMI which measured ERM implementation had a negative effect on ROA (0.166), and the effect is considered statistically significant since the p-value is 0.001.…”

Section: Discussionsupporting

confidence: 85%

Effect of Enterprise Risk Management on the Profitability of Insurance Companies in Nigeria

Soladoye,

Dominic,

Gambo

et al. 2024

EJAAFR

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Nigeria's insurance industry, despite contributing less than 1% to Nigeria's GDP, is considered crucial to the economy as it controls large sums of money and protects businesses from diverse risks. However, concerned about business failures in the insurance industry, the National Insurance Commission in 2012, mandated the adoption of Enterprise Risk Management (ERM) by all insurance businesses in Nigeria to address this issue and to deter future business failures. This research work studied the effect of ERM on the profitability of Nigerian insurance businesses over a 10-year period, encompassing the two years prior to, and eight years following the introduction of ERM. ERM is studied from two perspectives: ERM adoption and ERM implementation. Profitability, the dependent variable was measured by Return on Assets while ERM adoption was measured using Chief Risk Officer (CRO) and Board Risk Committee Composition (BRCC. Enterprise Risk Management Index (ERMI) measured ERM implementation. Firm Size (F. SIZE) represented by Total Assets and Firm Age (F.AGE), represented by total years of operations, served as control variables. Using the expo-facto research design and the census sampling technique, relevant secondary data about all 37 insurance companies that were in operation during the study period (2010 – 2019) was collected from published financial statements and the regulator’s reports. The multiple regression analysis revealed that while CRO and BRCC contributed positively to ROA but not at a statistically significant level, ERMI had a negative effect on ROA. The research confirms that ERM adoption only is not sufficient to influence profitability. For better results from ERM, an industry-wide review of implementation practices by NAICOM is recommended.

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Section: Discussionsupporting

confidence: 85%

Effect of Enterprise Risk Management on the Profitability of Insurance Companies in Nigeria

Soladoye,

Dominic,

Gambo

et al. 2024

EJAAFR

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More certainty in uncertainty: a special life-cycle approach for management decisions in volatile markets

Röser

2024

J Manag Control

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Risk managers as corporate stewards are important gatekeepers in enterprises and they are essential to managing risks. Relatedly, a more accurate evaluation of the risk factors allows a well-founded decision-making process and reduces the number of surprising situations that could occur especially in volatile markets. Forward-looking risk management increases entrepreneurial resilience because risk factors are already estimated at an earlier stage in the corresponding risk analysis. Furthermore, the range of potential solutions can be estimated in a successive way. These aspects are relevant especially for products with follow-up effects. Such new product bundles are typical in current businesses. They require a more precise risk analysis, which allows an effective view of the life-cycles of the whole products and the customer relationships. Within well-founded risk decomposition, the existing risk can be managed appropriately. The following study presents a special life-cycle approach for evaluating products and customers in risky situations. Especially for important management decisions, such an approach is necessary, given that only a few products or customers can have a major influence on the success of the enterprise. Therefore, a systematic risk-oriented approach is essential that adequately identifies, assesses and controls the risk factors and enables agile adaptability for fast changes. Considering the risk management perspective, simulation techniques are a useful approach to solve sophisticated decision situations. The applicability of this concept is demonstrated using a computation example reflecting real-world circumstances. The presented approach is broadly defined. That is the reason why the approach can also be transferred to other sectors.

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Die simulationsbasierte Bewertung von Nachhaltigkeitsrisiken und Nachhaltigkeitsmanagement

Gleißner¹,

Moecke²,

Ernst³

2022

ZFKE

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Enterprise Risk Management in Germany

Cited by 4 publications

References 28 publications

Effect of Enterprise Risk Management on the Profitability of Insurance Companies in Nigeria

Effect of Enterprise Risk Management on the Profitability of Insurance Companies in Nigeria

More certainty in uncertainty: a special life-cycle approach for management decisions in volatile markets

Die simulationsbasierte Bewertung von Nachhaltigkeitsrisiken und Nachhaltigkeitsmanagement

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