Practicality and potential value of enterprise risk management in the manufacturing sector in China
This paper examined the practicality and potential value of Enterprise Risk Management (ERM) in China through three aspects: the impacts of ERM on the relationship between different kinds of risk and whole risk portfolio; the influence of ERM on components of risk structure; and the function of ERM...
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| Format: | Article |
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Universiti Putra Malaysia
2015
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| _version_ | 1825721266458329088 |
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| author | Zou, X. Hassan, C.H. |
| author_facet | Zou, X. Hassan, C.H. |
| author_sort | Zou, X. |
| collection | UM |
| description | This paper examined the practicality and potential value of Enterprise Risk Management (ERM) in China through three aspects: the impacts of ERM on the relationship between different kinds of risk and whole risk portfolio; the influence of ERM on components of risk structure; and the function of ERM in correlation with risk portfolio and firm performance. A Multiple Indicator Multiple Causes (MIMIC) model was structured for a comprehensive determination of the connection between ERM and firm's performance. The results showed that ERM could reduce the relevance of the kinds of risk to risk portfolio, and the interactions between risk categories are minimised as well. As ERM makes the risk structure more significant to firm's performance, thus, the firm can benefit from risk portfolio and realise profit potentials. |
| first_indexed | 2024-03-06T05:47:46Z |
| format | Article |
| id | um.eprints-19267 |
| institution | Universiti Malaya |
| last_indexed | 2024-03-06T05:47:46Z |
| publishDate | 2015 |
| publisher | Universiti Putra Malaysia |
| record_format | dspace |
| spelling | um.eprints-192672018-09-19T01:10:31Z http://eprints.um.edu.my/19267/ Practicality and potential value of enterprise risk management in the manufacturing sector in China Zou, X. Hassan, C.H. HC Economic History and Conditions HF Commerce This paper examined the practicality and potential value of Enterprise Risk Management (ERM) in China through three aspects: the impacts of ERM on the relationship between different kinds of risk and whole risk portfolio; the influence of ERM on components of risk structure; and the function of ERM in correlation with risk portfolio and firm performance. A Multiple Indicator Multiple Causes (MIMIC) model was structured for a comprehensive determination of the connection between ERM and firm's performance. The results showed that ERM could reduce the relevance of the kinds of risk to risk portfolio, and the interactions between risk categories are minimised as well. As ERM makes the risk structure more significant to firm's performance, thus, the firm can benefit from risk portfolio and realise profit potentials. Universiti Putra Malaysia 2015 Article PeerReviewed Zou, X. and Hassan, C.H. (2015) Practicality and potential value of enterprise risk management in the manufacturing sector in China. Pertanika Journal of Social Sciences and Humanities, 23 (May). pp. 1-12. ISSN 0128-7702, http://www.pertanika.upm.edu.my/Pertanika%20PAPERS/JSSH%20Vol.%2023%20(S)%20May.%202015/01%20JSSH%20Vol%2023%20(S)%20May%202015_pg1-12.pdf |
| spellingShingle | HC Economic History and Conditions HF Commerce Zou, X. Hassan, C.H. Practicality and potential value of enterprise risk management in the manufacturing sector in China |
| title | Practicality and potential value of enterprise risk management in the manufacturing sector in China |
| title_full | Practicality and potential value of enterprise risk management in the manufacturing sector in China |
| title_fullStr | Practicality and potential value of enterprise risk management in the manufacturing sector in China |
| title_full_unstemmed | Practicality and potential value of enterprise risk management in the manufacturing sector in China |
| title_short | Practicality and potential value of enterprise risk management in the manufacturing sector in China |
| title_sort | practicality and potential value of enterprise risk management in the manufacturing sector in china |
| topic | HC Economic History and Conditions HF Commerce |
| work_keys_str_mv | AT zoux practicalityandpotentialvalueofenterpriseriskmanagementinthemanufacturingsectorinchina AT hassanch practicalityandpotentialvalueofenterpriseriskmanagementinthemanufacturingsectorinchina |