The Effect of Corporate Governance on the Use of Enterprise Risk Management-An Empirical Study on Financial and Electronic Companies in Taiwan

• Main Authors: Ya-wen Lo, 羅雅文
• Other Authors: Louis J. H. Lu
• Format: Others
• Language: en_US
• Online Access: http://ndltd.ncl.edu.tw/handle/a593e2

碩士 === 銘傳大學 === 風險管理與保險學系碩士班 === 96 === This article examines the use of Enterprise Risk Management (ERM) by companies in Taiwan, the characteristics that are associated with the use of ERM, what obstacles companies face in implementing ERM, and what role, if any, corporate governance guidelines have played in the decision to adopt ERM. In this article, we obtain our data from the responses to a search questionnaires send to the top 600, in annual revenues of 2007, of financial and electronic companies and examine to what extent companies in Taiwan are using ERM, what characteristics are associated with the use of ERM, what obstacles companies face in implementing ERM, and what role, if any, corporate governance guidelines have played in the decision to adopt ERM. Evidence was clear that reasons for adopting ERM include compliance with TSE guidelines, encouragement from the board of directors; concern for Directors'' and Officers'' (D&O) liability was important, product innovation in managing risk and competition or other industry-related pressures. Besides, we also found the major deterrents to the implementation of ERM were lack of qualified personnel to implement the program and need for internal control and review systems. Organizational structure or a corporate culture that discourages ERM was also important, as was the company resistance to change. Keywords: Enterprise Risk Management (ERM), Corporate Governance