Risk Management and Board Effectiveness

Ingley, Coral; Walt, N. Van der

doi:10.2753/imo0020-8825380302

Cited by 24 publications

(7 citation statements)

References 15 publications

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“…Board demography and the mix of knowledge and skills on the board yield information that is likely to affect the "black box" of board processes. For example, one study demonstrated a lack of confidence among directors about C o r p o r a t e G o v e r n a n c e 4 their peers' abilities to deal with complex financial matters and risk (Ingley & van der Walt, 2008).…”

Section: Board Effectivenessmentioning

confidence: 99%

“…Board demography and the mix of knowledge and skills on the board yield information that is likely to affect the “black box” of board processes. For example, one study demonstrated a lack of confidence among directors about their peers’ abilities to deal with complex financial matters and risk (Ingley and van der Walt, 2008). Effort norms can be estimated by the increasingly common corporate reporting of attendance at board and committee meetings.…”

Section: Board Effectivenessmentioning

confidence: 99%

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Evaluating the effectiveness of corporate boards

Nordberg

Booth

2019

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Purpose-This paper examines how board evaluations have emerged as an important tool in public policy and corporate practice for enhancing board effectiveness. Design/methodology/approach-We review the extensive literature on effectiveness and the emerging literature on board evaluation to identify ways to assess the current policy direction for external evaluation of corporate boards. Findings-The paper develops an integrated framework of effectiveness that can be used as a tool for board evaluation, in particular for externally facilitated exercises. Research limitations/implications-Through its integration of prior conceptual work this paper advances our theoretical understanding of this emerging part of policy and practice, with to-date lack much empirical basis. Practical implications-The framework we develop shows ways to focus how the practice is conducted by boards and external evaluators alike. Social implications-It can also help policy formation by pointing out the limitations as well as benefits of various policy options. Originality/value-In pointing to ways to develop study of the field through empirical research it provides direction for future academic research. It also identifies a need for and direction toward the professionalization of practice.

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Section: Board Effectivenessmentioning

confidence: 99%

Section: Board Effectivenessmentioning

confidence: 99%

Evaluating the effectiveness of corporate boards

Nordberg

Booth

2019

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“…The pertinence of managing risks was severely felt during the global financial crisis (Lagasio, 2018). The boards of several corporates were criticised for ineffective risk-management practices before and during the financial crisis (Ingley and Van Der Walt, 2008). As financial companies were among the worst-hit entities during the crisis, the national authorities of various countries took active measures to improvise regulatory and supervisory oversight of risk governance and tightened the role of corporate boards (Brogi, 2011; McConnell, 2012).…”

Section: Conceptual Frameworkmentioning

confidence: 99%

Corporate governance and risk management: a systematic review and synthesis for future research

Kalia

Gill

2023

JAMR

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PurposeThe world economy has experienced several economic downturns, and each phase emphasised that no industry is immune to inappropriate risk-management practices. Against the backdrop of the recent COVID-19 pandemic, which had far more effects than a financial crisis, the existing paper reviewed the state of current research in the realm of corporate governance and risk-management practices.Design/methodology/approachThis study rigorously followed a systematic approach in identifying, selecting and critically synthesising the existing literature on corporate governance and risk management. The review was carried out on the Web of Science and Scopus database until December 31, 2022. In total, 72 research works were examined and reviewed.FindingsThis systematic literature review showed that companies with strong governance mechanisms are less exposed to corporate risks. Several attributes, such as higher institutional ownership stakes, concentrated family ownership structures, lower CEO compensation and duality, higher presence of females in the management, better board dynamics in terms of independent boards and gender diversity are all strong mechanisms for mitigating risk. Additionally, socially responsible companies are better positioned to mitigate corporate risks. Furthermore, several themes emphasising the governance risk link have been identified to understand this domain further.Originality/valueBy analysing and synthesising existing corporate governance and risk-management themes, this study ascertained various research gaps that can be addressed in future studies. Furthermore, drawing on this paper's essential cues, researchers can significantly differentiate their work from existing ones in the field.

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“…The board of directors oversees risk management strategies to ensure alignment with corporate goals. Ingley & Walt (2008) underscored the pivotal role of board composition and structure in managing risk. Muralidhar (2010) investigated the correlation between risk management practices and company performance in the GCC and Saudi Arabia.…”

Section: Risk Management and Firm Performancementioning

confidence: 99%

In Light of the Current Economic Status: Do Board Characteristics and Risk Management Committees Promote Firm Performance in Saudi Arabia?

Alabdullah

2023

JHSSB

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The current study aimed to investigate the impact of corporate governance mechanisms on the profitability of listed companies within the Saudi Stock Exchange (SSE). The methodology involved data collection from the SSE for the fiscal year 2021, with a research sample comprising 60 corporations. The study's independent variables encompassed the size of the board of directors, frequency of board meetings, and the presence of risk management practices. The dependent variable was corporate performance, as indicated by the return on assets (ROA). To enhance the evaluation of the relationship between the independent variables and the dependent variable, the study also incorporated a control variable - the size of the corporation. The study's findings unveiled that a larger board size had a positive impact on the performance of Saudi corporations. Furthermore, both an increased frequency of board meetings and the implementation of risk management practices exhibited positive effects on corporate performance. This research contributes significantly by exploring the direct influence of board size, board meeting frequency, and risk management practices on the performance of SSE-listed companies. The study's novelty lies in its comprehensive examination of these specific corporate governance mechanisms and their correlation with return on assets.

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Risk Management and Board Effectiveness

Cited by 24 publications

References 15 publications

Evaluating the effectiveness of corporate boards

Evaluating the effectiveness of corporate boards

Corporate governance and risk management: a systematic review and synthesis for future research

In Light of the Current Economic Status: Do Board Characteristics and Risk Management Committees Promote Firm Performance in Saudi Arabia?

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