According to the World Bank research involving SMEs from 104 developing countries has found that small firms have the largest shares of job creation, highest sales growth and employment growth compare to large firm. However, large firm is more productive. Similarly, SMEs in Malaysia also contribute significantly to the economic development especially in creating new job opportunities. SMEs involvements in business expose themselves to risks. Hence, SMEs need risk management. A review of current literature was focus to the adoption of ERM among large firm. However studies that have been conducted to examine ERM adoption among SME are still lacking. More important, the identification of adopters and non-adopters are based on the large firm’s ERM indicator such as Chief Risk Officer (CRO) or COSO (2004) whereas SMEs with difference characteristic need a suitable adopters and non-adopters identification process. Thus, the main objective of this paper is to propose a simple and systematic identification process of adopters and non-adapters of ERM for SMEs.
Abdul Rasid, S. Z., & Abdul Rahman, A. R. (2009). Management Accounting and Risk Management Practices in Financial Institutions. Jurnal Teknologi, 51, 89–110.
Alliance, G. R. (2005). Risk management guide for small business.
Amalina, N., Abdullah, M., Zakuan, N., Khayon, M., & Ariff, M. S. (2012). Adoption of Enterprise Risk Management Practices in Organization?: A Review. International Journal Business & Information Technology, 2(1), 1–9. Retrieved from http://excelingtech.co.uk/
Ayyagari, M., Demirguc-Kunt, A., & Maksimovic, V. (2011). Small vs . Young Firms across the World Contribution to Employment , Job Creation , and Growth.
Beasley, M. S., Clune, R., & Hermanson, D. R. (2005a). Enterprise risk management: An empirical analysis of factors associated with the extent of implementation. Journal of Accounting & Public Policy, 24(6), 521–531. Retrieved from 10.1016/j.jaccpubpol.2005.10.001%5Cnhttp://libaccess.mcmaster.ca.libaccess.lib.mcmaster.ca/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=19185873&site=ehost-live&scope=site
Beasley, M. S., Clune, R., & Hermanson, D. R. (2005b). Enterprise risk management: An empirical analysis of factors associated with the extent of implementation. Journal of Accounting and Public Policy, 24(6), 521–531. https://doi.org/10.1016/j.jaccpubpol.2005.10.001
Beasley, M. S., Clune, R., & Hermanson, D. R. (2005c). Enterprise risk management: An empirical analysis of factors associated with the extent of implementation. Journal of Accounting and Public Policy, 24(6), 521–531. https://doi.org/10.1016/j.jaccpubpol.2005.10.001
Brustbauer, J. (2016). Enterprise risk management in SMEs?: Towards a structural model, (X). https://doi.org/10.1177/0266242614542853
Chandra Shekhar, P., & Warrier, S. R. (2004). Enterprise Risk Management - From the boardroom to shop floor. Domain Competency Group of Infosys Ltd. Retrieved from www.infosys.com
Dickinson, G. (2001). Enterprise Risk Management?: Its Origins and Conceptual Foundation. The Geneva Papers on Risk and Insurance, 26(3), 360–366. https://doi.org/10.1111/1468-0440.00121
Ekwere, N. (2016). Framework of Effective Risk Management in Small and Medium Enterprises ( SMEs ): A Literature Review, 20, 23–46.
Falkner, E. M., & Hiebl, M. R. W. (2015). Risk management in SMEs?: a systematic review of available evidence. https://doi.org/10.1108/JRF-06-2014-0079
Gorze?-Mitka, I. (2013). Risk Identification Tools -- Polish Msmes Companies Practices. Problems of Management in the 21st Century, 7, 6–11. Retrieved from http://ra.ocls.ca/ra/login.aspx?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=89641545&site=bsi-live
Hoyt, R. E., Moore, D. L., & Liebenberg, A. P. (2008). The Value of Enterprise Risk Management?: Evidence from the U . S . Insurance Industry. Unpublished Paper, 1–22.
Kiew Heong Angeline, Y., & Saw Teng, Y. (2016). Enterprise Risk Management: Evidence from Small-Medium Enterprises, (March), 151–170.
Lam, J. (n.d.). management The ERM Guide from AFP.
Lam, J. (2014). Enterprise Risk Management: From Incentives to Controls; Second Edition. Wiley, 2, 1–476.
Leung, S. (2016). A Comparison of Psychometric Properties and Normality in 4- , 5- , 6- , and 11-Point Likert Scales A Comparison of Psychometric Properties and Normality in, 8376(January). https://doi.org/10.1080/01488376.2011.580697
Lundqvist, S. a. (2014). An exploratory study of enterprise risk management?: Pillars of ERM. Journal of Accounting, Auditing, and Finance, 29(3), 393–429. https://doi.org/10.1177/0148558X14535780
Malaysia, S. C. (2012). Malaysian Code on Corporate Governance 2012, 1–43.
Malaysia, S. C. (2012). Summary SME Masterplan 2012-2020. SME Corporation Malaysia. Kuala Lumpur. Retrieved from http://medcontent.metapress.com/index/A65RM03P4874243N.pdf
Malaysia, S. C. (2016). SME Annual Report 2015/16.
Monda, B., & Giorgino, M. (2013). An ERM Maturity Model. Professional Risk Managers’ International Association, Society of
In-Text Citation: (Aziz et al., 2018)
To Cite this Article: Aziz, K. A., Yazid, A. S., Mahmod, M. S., Rashid, N., Salleh, F., Ghazali, P. L., & Mahmood, S. (2018). Enterprise Risk Management (ERM) Practices among Malaysian SMEs: The Three Steps Process to identify Adopters and Non-Adopters of ERM for SMEs. International Journal of Academic Research in Business and Social Sciences, 8(11), 1232–1245.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
