Management accounting and risk management practices in financial institutions

The aim of this paper is to report the results of a study on management accounting and risk management practices in financial institutions. The research method involved administering a questionnaire to 106 financial institutions listed on the Malaysian Central Bank’s website and the respondents were...

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Main Authors:	Abdul Rasid, Siti Zaleha, Abdul Rahman, Abdul Rahim
Format:	Article
Language:	English
Published:	Universiti Teknologi Malaysia 2009
Subjects:	HF5001 Business. Business Administration HF5601 Accounting. Bookkeeping
Online Access:	http://irep.iium.edu.my/1131/ http://irep.iium.edu.my/1131/ http://irep.iium.edu.my/1131/1/Management_accounting_and_risk_management_practices_in_financial_institutions.pdf

id	iium-1131
recordtype	eprints
spelling	iium-11312011-07-21T08:37:11Z http://irep.iium.edu.my/1131/ Management accounting and risk management practices in financial institutions Abdul Rasid, Siti Zaleha Abdul Rahman, Abdul Rahim HF5001 Business. Business Administration HF5601 Accounting. Bookkeeping The aim of this paper is to report the results of a study on management accounting and risk management practices in financial institutions. The research method involved administering a questionnaire to 106 financial institutions listed on the Malaysian Central Bank’s website and the respondents were the chief financial officers (CFO) or the most senior positions in the finance department of the institutions. Based on the IFAC’s (1998) framework, it was found that the most widely practiced were the management accounting practices at Stage 1, followed by practices of Post 1995. This finding shows that despite the emergence of contemporary management accounting practices (Stage 4 onwards), traditional management accounting that focuses on financial performance and budgetary control is still widely practiced by financial institutions in Malaysia. As for the risk management practices, most of the firms have either implemented a complete or partial Enterprise Risk Management (ERM) framework. The findings from the survey showed that management accounting practices related to financial statement and ratio analysis were perceived to contribute most towards risk management. Budgetary control, budgeting and strategic planning were also perceived to be important in managing operational risks. Universiti Teknologi Malaysia 2009-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/1131/1/Management_accounting_and_risk_management_practices_in_financial_institutions.pdf Abdul Rasid, Siti Zaleha and Abdul Rahman, Abdul Rahim (2009) Management accounting and risk management practices in financial institutions. Jurnal Teknologi, 51(E). pp. 89-110. ISSN 2180–3722 (O), 0127–9696 (P) http://www.penerbit.utm.my/cgi-bin/jurnal/jurnal.cgi?id=siri_sainssosial
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF5001 Business. Business Administration HF5601 Accounting. Bookkeeping
spellingShingle	HF5001 Business. Business Administration HF5601 Accounting. Bookkeeping Abdul Rasid, Siti Zaleha Abdul Rahman, Abdul Rahim Management accounting and risk management practices in financial institutions
description	The aim of this paper is to report the results of a study on management accounting and risk management practices in financial institutions. The research method involved administering a questionnaire to 106 financial institutions listed on the Malaysian Central Bank’s website and the respondents were the chief financial officers (CFO) or the most senior positions in the finance department of the institutions. Based on the IFAC’s (1998) framework, it was found that the most widely practiced were the management accounting practices at Stage 1, followed by practices of Post 1995. This finding shows that despite the emergence of contemporary management accounting practices (Stage 4 onwards), traditional management accounting that focuses on financial performance and budgetary control is still widely practiced by financial institutions in Malaysia. As for the risk management practices, most of the firms have either implemented a complete or partial Enterprise Risk Management (ERM) framework. The findings from the survey showed that management accounting practices related to financial statement and ratio analysis were perceived to contribute most towards risk management. Budgetary control, budgeting and strategic planning were also perceived to be important in managing operational risks.
format	Article
author	Abdul Rasid, Siti Zaleha Abdul Rahman, Abdul Rahim
author_facet	Abdul Rasid, Siti Zaleha Abdul Rahman, Abdul Rahim
author_sort	Abdul Rasid, Siti Zaleha
title	Management accounting and risk management practices in financial institutions
title_short	Management accounting and risk management practices in financial institutions
title_full	Management accounting and risk management practices in financial institutions
title_fullStr	Management accounting and risk management practices in financial institutions
title_full_unstemmed	Management accounting and risk management practices in financial institutions
title_sort	management accounting and risk management practices in financial institutions
publisher	Universiti Teknologi Malaysia
publishDate	2009
url	http://irep.iium.edu.my/1131/ http://irep.iium.edu.my/1131/ http://irep.iium.edu.my/1131/1/Management_accounting_and_risk_management_practices_in_financial_institutions.pdf
first_indexed	2023-09-18T20:08:21Z
last_indexed	2023-09-18T20:08:21Z
_version_	1777407309994000384

Management accounting and risk management practices in financial institutions

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