Enterprise Risk Management Program Quality : Determinants, Value Relevance, And The Financial Crisis

734 Words Feb 24th, 2016 3 Pages
Article Critique #1 The first article reviewed was Enterprise Risk Management Program Quality: Determinants, Value Relevance, and the Financial Crisis. The abstract discusses the different factors associated with Enterprise Risk management (ERM) programs within different financial companies. It also discusses how the ERM system can help set a framework and help plan to incorporate management for all types of risk. The general area of this journal article looks to study how ERM systems are designed to improve risk management and how it can become a corporate governance mechanism that limits and directs managers’ behavior. The journal article also studies how ERM helps put internal controls in place beyond the corporation’s financial reporting system. The problem within the ERM system is there is not enough empirical research done on management control systems and how they are handled internally among corporations. It is important to understand how a corporation handles an ERM system and how it affects their risk management process internally. Readers need to understand the importance of the ERM system within a business or corporation. It is necessary to know how the ERM system incorporates corporate governance, risk management, and internal controls within their organization. It is also important to know and understand if the ERM system improves these among corporations. The first research question addresses the characteristics associated with ERM, as it is…

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