Enterprise risk management implementation : a study of Singapore companies

Abstract

This study investigates the level of Enterprise Risk Management (ERM) implementation in Singapore listed companies. We also examined the differences in the extent of ERM implementation between the listed companies based in Singapore and the United States.

Our research sample included a total of 100 Singapore listed companies. We selected the top ten companies based on their market capitalization from ten selected industries, namely commerce, construction, finance, holdings, hospitality/F&B, information and communications, manufacturing, property, services and transport/storage.

Our results showed that ERM implementation in Singapore listed companies are positively related to the presence of risk management committee, government ownership, firm’s size, segregation of duties between CEO and Chairman, and the engagement of Big Four Auditing Firm as their external auditor.

Unexpectedly, we also found that Singapore listed companies in our sample have a higher level of ERM implementation as compared to those companies in the United States examined in Desender (2007). Possible explanations are provided in the report.