Management accounting and risk management in Malaysian financial institutions : an exploratory study

Purpose – The purpose of this paper is to examine the link between management accounting and risk management. The paper measures the extent to which management accounting practices help in managing risks and the extent of the integration between these two important managerial functions. Design/metho...

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Main Authors:	Abdul Rashid, Siti Zaleha, Abdul Rahman, Abdul Rahim, Wan Ismail, Wan Khairuzzaman
Format:	Article
Language:	English
Published:	Emerald 2011
Subjects:	HF5601 Accounting. Bookkeeping HG1501 Banking
Online Access:	http://irep.iium.edu.my/6809/ http://irep.iium.edu.my/6809/ http://irep.iium.edu.my/6809/1/Magt_Acctg_%26_Risk_Mgt_-_MAJ.pdf

id	iium-6809
recordtype	eprints
spelling	iium-68092012-05-07T13:11:08Z http://irep.iium.edu.my/6809/ Management accounting and risk management in Malaysian financial institutions : an exploratory study Abdul Rashid, Siti Zaleha Abdul Rahman, Abdul Rahim Wan Ismail, Wan Khairuzzaman HF5601 Accounting. Bookkeeping HG1501 Banking Purpose – The purpose of this paper is to examine the link between management accounting and risk management. The paper measures the extent to which management accounting practices help in managing risks and the extent of the integration between these two important managerial functions. Design/methodology/approach – The study used a mail survey of financial institutions listed in the Malaysian Central Banks’ web site. The respondents to whom 106 questionnaires were sent were the chief financial officers; the response rate was 68 percent. A total of 16 post-survey semi-structured interviews were also conducted with selected respondents to gain further insights into the survey findings. Findings – The findings from the survey indicate that analysis of financial statements was perceived to contribute most towards risk management. The majority of the respondents were of the view that the management accounting function was greatly involved in the organization’s risk management. Consistent with the survey findings, the interviewees also perceived that budgetary control, budgeting, and strategic planning played important roles in managing risk.Research limitations/implications – This is a study conducted in Malaysian financial institutions and thus, results may not be generalizable to other contexts. The findings of this study strengthen the importance of both management accounting and risk management in complementing each other to form part of the corporate performance management systems. Originality/value – This paper contributes to the literature as very few studies have examined the significant link between management accounting and risk management. Emerald 2011 Article PeerReviewed application/pdf en http://irep.iium.edu.my/6809/1/Magt_Acctg_%26_Risk_Mgt_-_MAJ.pdf Abdul Rashid, Siti Zaleha and Abdul Rahman, Abdul Rahim and Wan Ismail, Wan Khairuzzaman (2011) Management accounting and risk management in Malaysian financial institutions : an exploratory study. Managerial Auditing Journal, 26 (7). pp. 566-585. ISSN 0268-6902 http://www.emeraldinsight.com/products/journals/journals.htm?id=maj&PHPSESSID=t8i67lbciaa5shh2q332b9umh2
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF5601 Accounting. Bookkeeping HG1501 Banking
spellingShingle	HF5601 Accounting. Bookkeeping HG1501 Banking Abdul Rashid, Siti Zaleha Abdul Rahman, Abdul Rahim Wan Ismail, Wan Khairuzzaman Management accounting and risk management in Malaysian financial institutions : an exploratory study
description	Purpose – The purpose of this paper is to examine the link between management accounting and risk management. The paper measures the extent to which management accounting practices help in managing risks and the extent of the integration between these two important managerial functions. Design/methodology/approach – The study used a mail survey of financial institutions listed in the Malaysian Central Banks’ web site. The respondents to whom 106 questionnaires were sent were the chief financial officers; the response rate was 68 percent. A total of 16 post-survey semi-structured interviews were also conducted with selected respondents to gain further insights into the survey findings. Findings – The findings from the survey indicate that analysis of financial statements was perceived to contribute most towards risk management. The majority of the respondents were of the view that the management accounting function was greatly involved in the organization’s risk management. Consistent with the survey findings, the interviewees also perceived that budgetary control, budgeting, and strategic planning played important roles in managing risk.Research limitations/implications – This is a study conducted in Malaysian financial institutions and thus, results may not be generalizable to other contexts. The findings of this study strengthen the importance of both management accounting and risk management in complementing each other to form part of the corporate performance management systems. Originality/value – This paper contributes to the literature as very few studies have examined the significant link between management accounting and risk management.
format	Article
author	Abdul Rashid, Siti Zaleha Abdul Rahman, Abdul Rahim Wan Ismail, Wan Khairuzzaman
author_facet	Abdul Rashid, Siti Zaleha Abdul Rahman, Abdul Rahim Wan Ismail, Wan Khairuzzaman
author_sort	Abdul Rashid, Siti Zaleha
title	Management accounting and risk management in Malaysian financial institutions : an exploratory study
title_short	Management accounting and risk management in Malaysian financial institutions : an exploratory study
title_full	Management accounting and risk management in Malaysian financial institutions : an exploratory study
title_fullStr	Management accounting and risk management in Malaysian financial institutions : an exploratory study
title_full_unstemmed	Management accounting and risk management in Malaysian financial institutions : an exploratory study
title_sort	management accounting and risk management in malaysian financial institutions : an exploratory study
publisher	Emerald
publishDate	2011
url	http://irep.iium.edu.my/6809/ http://irep.iium.edu.my/6809/ http://irep.iium.edu.my/6809/1/Magt_Acctg_%26_Risk_Mgt_-_MAJ.pdf
first_indexed	2023-09-18T20:15:58Z
last_indexed	2023-09-18T20:15:58Z
_version_	1777407788918505472

Management accounting and risk management in Malaysian financial institutions : an exploratory study

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