A Study of Enterprise-wide Risk Management and Risk Reporting Practices in UK Listed Companies

Li, Xiaochen (2012) A Study of Enterprise-wide Risk Management and Risk Reporting Practices in UK Listed Companies. [Dissertation (University of Nottingham only)] (Unpublished)

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Nowadays, it indeed becomes harder for companies to plot the right course for their continued success in this age of globalizations. Companies are sinking into more vulnerable position to risks as before and it would ultimately affect both operational activities of firms and decision making process of stakeholders. Therefore, practices of risk management and risk reporting have gained more attention from outside stakeholders, as well as academic community.

The study aims to find out the risk management performance and risk reporting practices among UK listed companies throughout the last five years, by focus on the 105 annual reports from 21 non-financial companies throughout financial year 2007 to 2011. The research objectives are respectively: (1), Research the ERM adoption level in UK listed firms, as well as its implementing level of the regarding organizational structure; (2), Examine the effects of ERM on firm’s risk management performance and risk reporting practices; (3), and finally, Test the statistic correlation between firm’s characteristics and its risk management and risk reporting practices.

The study starts with the broad review on risk and risk management literatures, and processes to the focused review on Enterprise-wide risk management and risk reporting conceptual literatures. The part of empirical study then proceeds in performing Content analysis, combined with different methodologies regarding each sets of developed hypotheses.

It is found that the implementation level of Enterprise-wide risk management has gradually increased during the last five years, but the related number of appointed CROs and risk committees has not consequently risen. The potential benefits of adopting ERM reflect in aspects of enhanced risk management performance and improved risk reporting practices among the firms. At last, empirical results regarding the third research questions further imply the logically positive correlation between firm size and firm’s risk reporting practices, particularly in terms of the risk management performance, and the disclosed volume of different levels of risk disclosures.

Item Type: Dissertation (University of Nottingham only)
Keywords: ERM, Risk Management, Risk Reporting, UK Listed Companies, Annual Reports
Depositing User: EP, Services
Date Deposited: 04 Aug 2014 11:31
Last Modified: 14 Sep 2016 03:19
URI: http://eprints.nottingham.ac.uk/id/eprint/25664

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