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Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

On the Determinants of Enterprise Risk Management Implementation

On the Determinants of Enterprise Risk Management Implementation
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Author(s): Kurt Desender (Universitat Autonoma de Barcelona, Spain)
Copyright: 2007
Pages: 4
Source title: Managing Worldwide Operations and Communications with Information Technology
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59904-929-8.ch028
ISBN13: 9781599049298
EISBN13: 9781466665378


Corporate governance failures and new legislation and recommendations have emphasized the importance of control and risk management in preventing fraudulent reporting and reducing agency costs. The objective of this paper is to investigate how a company’s board characteristics influence the decision to invest in enterprise risk management. This paper contributes mainly to field of corporate governance research by providing new evidence on the relationship between board characteristics and enterprise risk management. In addition we also suggest a measure to test the quality of enterprise risk management derived from the COSO theoretical paper on enterprise risk management. The main results of this research is that board independence alone has no significant relationship with the enterprise risk management quality, while the separation of CEO and chairman, or the combination an independent board combined with a separation are more likely to adopt ERM.

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