Critical Review of Literature on Enterprise Risk Management and the Cost of Capital: The Value Creation Perspective

Enterprise risk management (ERM) encompasses the spectrum of identifying and analyzing risk from an integrated, company-wide perspective in a structured and disciplined approach in aligning strategy, processes, people, technology and knowledge with a purpose of evaluating and managing the uncertaint...

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Main Authors:	Fong-Woon, Lai, Noor Azlinna, Azizan
Format:	Article
Language:	English
Published:	Academic Journals 2012
Subjects:	HD61 Risk Management
Online Access:	http://umpir.ump.edu.my/id/eprint/6795/ http://umpir.ump.edu.my/id/eprint/6795/ http://umpir.ump.edu.my/id/eprint/6795/ http://umpir.ump.edu.my/id/eprint/6795/1/Critical_Review_of_Literature_on_Enterprise_Risk_Management_and_the_Cost_of_Capital.pdf

id	ump-6795
recordtype	eprints
spelling	ump-67952018-05-02T03:24:48Z http://umpir.ump.edu.my/id/eprint/6795/ Critical Review of Literature on Enterprise Risk Management and the Cost of Capital: The Value Creation Perspective Fong-Woon, Lai Noor Azlinna, Azizan HD61 Risk Management Enterprise risk management (ERM) encompasses the spectrum of identifying and analyzing risk from an integrated, company-wide perspective in a structured and disciplined approach in aligning strategy, processes, people, technology and knowledge with a purpose of evaluating and managing the uncertainties facing the enterprise as it creates value. ERM essentially lays concern for managing the firm’s idiosyncratic risks apart from the systematic risks. However, the neo-classical finance theory (NCFT) postulates that managing the firm’s idiosyncratic risks is irrelevant. ERM implementation framework embraces the active management of the firm’s three classes of unsystematic risk, namely tactical risk, strategic risk and normative risk. This paper aims to provide a critical review of literature on the notion of managing firms’ unsystematic (specific) risk via an ERM implementation framework that leads to the enhancement of shareholders’ value. The mechanism through which the firms’ value enhancement is supposed to take place is theorized by a strategic conceptualization of risk premium model. Academic Journals 2012 Article PeerReviewed application/pdf en cc_by http://umpir.ump.edu.my/id/eprint/6795/1/Critical_Review_of_Literature_on_Enterprise_Risk_Management_and_the_Cost_of_Capital.pdf Fong-Woon, Lai and Noor Azlinna, Azizan (2012) Critical Review of Literature on Enterprise Risk Management and the Cost of Capital: The Value Creation Perspective. African Journal of Business Management, 6 (9). pp. 3126-3133. ISSN 1993-8233 http://www.academicjournals.org/journal/AJBM/article-full-text-pdf/569AE1228804 DOI: 10.5897/AJBM11.2659
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Malaysia Pahang
building	UMP Institutional Repository
collection	Online Access
language	English
topic	HD61 Risk Management
spellingShingle	HD61 Risk Management Fong-Woon, Lai Noor Azlinna, Azizan Critical Review of Literature on Enterprise Risk Management and the Cost of Capital: The Value Creation Perspective
description	Enterprise risk management (ERM) encompasses the spectrum of identifying and analyzing risk from an integrated, company-wide perspective in a structured and disciplined approach in aligning strategy, processes, people, technology and knowledge with a purpose of evaluating and managing the uncertainties facing the enterprise as it creates value. ERM essentially lays concern for managing the firm’s idiosyncratic risks apart from the systematic risks. However, the neo-classical finance theory (NCFT) postulates that managing the firm’s idiosyncratic risks is irrelevant. ERM implementation framework embraces the active management of the firm’s three classes of unsystematic risk, namely tactical risk, strategic risk and normative risk. This paper aims to provide a critical review of literature on the notion of managing firms’ unsystematic (specific) risk via an ERM implementation framework that leads to the enhancement of shareholders’ value. The mechanism through which the firms’ value enhancement is supposed to take place is theorized by a strategic conceptualization of risk premium model.
format	Article
author	Fong-Woon, Lai Noor Azlinna, Azizan
author_facet	Fong-Woon, Lai Noor Azlinna, Azizan
author_sort	Fong-Woon, Lai
title	Critical Review of Literature on Enterprise Risk Management and the Cost of Capital: The Value Creation Perspective
title_short	Critical Review of Literature on Enterprise Risk Management and the Cost of Capital: The Value Creation Perspective
title_full	Critical Review of Literature on Enterprise Risk Management and the Cost of Capital: The Value Creation Perspective
title_fullStr	Critical Review of Literature on Enterprise Risk Management and the Cost of Capital: The Value Creation Perspective
title_full_unstemmed	Critical Review of Literature on Enterprise Risk Management and the Cost of Capital: The Value Creation Perspective
title_sort	critical review of literature on enterprise risk management and the cost of capital: the value creation perspective
publisher	Academic Journals
publishDate	2012
url	http://umpir.ump.edu.my/id/eprint/6795/ http://umpir.ump.edu.my/id/eprint/6795/ http://umpir.ump.edu.my/id/eprint/6795/ http://umpir.ump.edu.my/id/eprint/6795/1/Critical_Review_of_Literature_on_Enterprise_Risk_Management_and_the_Cost_of_Capital.pdf
first_indexed	2023-09-18T22:02:53Z
last_indexed	2023-09-18T22:02:53Z
_version_	1777414515751649280

Critical Review of Literature on Enterprise Risk Management and the Cost of Capital: The Value Creation Perspective

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