A descriptive study on standalone risk management committee adoption among the top 50 Malaysian firms / Naqiah Awang... [et al.]

Awang, Naqiah and Hussin, Nur Syafiqah and Razali, Fatin Adilah and Abu Talib, Shafinaz Lyana (2021) A descriptive study on standalone risk management committee adoption among the top 50 Malaysian firms / Naqiah Awang... [et al.]. Journal of Social Sciences and Humanities, 5 (2). pp. 84-93. ISSN 2600-7274

Official URL: http://ejssh.uitm.edu.my

Abstract

In a modern business environment, business is considered more fragile as compared to the traditional business setting due to technology sophistication and global market uncertainty. Firms cannot run away from managing unique and complicated risk issues when exploring greater opportunities for a higher return in a competitive market. Realizing this, the Securities Commission of Malaysia had encouraged large, listed firms to form a separated Risk Management Committee to ensure better anticipation and responsiveness towards risk management issues. However, this practice is still voluntary among Malaysian listed firms most probably to allow internal coordination among different business atmospheres. Hence, this paper aims to describe the adoption level of the best practices to establish a standalone Risk Management Committee among the top 50 largest listed firms in Bursa Malaysia. Given the issuance of the Malaysian Code of Corporate Governance 2017 before the attributes of the Risk Management Committee were further explored. Secondary data were adopted, and information was gathered from the firms’ annual reports in
2018 and 2019. It is available on the Bursa Malaysia website and each sampled firm’s website. The results revealed that more than half of Malaysian listed firms had taken the initiative to establish a standalone Risk Management Committee following the best practices recommended by the Malaysian Code of Corporate Governance 2017. However, the composition of Risk Management Committee members is heavily tied to the Audit Committee. This current study provides insight into the risk governance structure among Malaysian listed firms after issuing the Malaysian Code of Corporate Governance 2017.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Awang, Naqiah
naqiah0026@uitm.edu.my
Hussin, Nur Syafiqah
UNSPECIFIED
Razali, Fatin Adilah
UNSPECIFIED
Abu Talib, Shafinaz Lyana
UNSPECIFIED
Subjects: H Social Sciences > H Social Sciences (General)
L Education > LG Individual institutions
H Social Sciences > H Social Sciences (General) > Research > Statistical methods
Divisions: Universiti Teknologi MARA, Pulau Pinang > Permatang Pauh Campus
Journal or Publication Title: Journal of Social Sciences and Humanities
UiTM Journal Collections: UiTM Journal > ESTEEM Journal of Social Sciences and Humanities (EJSSH)
ISSN: 2600-7274
Volume: 5
Number: 2
Page Range: pp. 84-93
Keywords: Agency Theory, Audit Committee, Risk Management
Date: 27 September 2021
URI: https://ir.uitm.edu.my/id/eprint/56089
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