Developing Enterprise Risk Management Disclosure Index  using Factor Analysis

Sharifah Faatihah Syed Mohd Fuzi; Mohamat Sabri Hassan; Sarina Othman; Noorie Haryaniee Moulton

doi:10.21834/e-bpj.v9iSI22.5883

Authors

Sharifah Faatihah Syed Mohd Fuzi Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA, Negeri Sembilan, Malaysia
Mohamat Sabri Hassan Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Selangor, Malaysia
Sarina Othman Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA, Selangor, Malaysia
Noorie Haryaniee Moulton Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA, Negeri Sembilan, Malaysia

DOI:

https://doi.org/10.21834/e-bpj.v9iSI22.5883

Keywords:

Enterprise Risk Management, Corporate Disclosure, Corporate Governance, Factor Analysis

Abstract

This study aims to explore the Enterprise Risk Management (ERM) disclosure by publicly listed firms in Malaysia. This study analyses a sample of 832 non-financial publicly listed firms in Malaysia between 2016-2019. This study used a more comprehensive index by embedding COSO-integrated ERM framework 2017 and ISO 31000. The data is analyzed using factor analysis to develop the ERM disclosure index. The results show that ERM disclosure consists of 4 main components: governance and culture, performance, objective setting, and reporting approach. Meanwhile, the level of ERM disclosure is still at a moderate level.

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