Malaysian enterprise risk management (MERIM) framework: Exploratory research

This research focuses on the Malaysian public listed companies (PLCs) risk management reporting and disclosure of risk management practices. Our survey of 500 listed companies shows that there are variations in risk reporting and risk management practices in the PLCs. We found that the companies have risk management related disclosures at different locations in their annual reports. Furthermore, there is a lack of coherence in the risk narratives. This research shows that enterprise wide risk management component underpinned by Committee of Sponsoring Organizations of Treadway Commission (COSO) are absent from the practice of these PLCs, which should be a cause of concern among the stakeholders. Based on these findings, we propose Malaysian Enterprise Risk Management (MERIM) Framework that could serve as a comprehensive risk management tool in facilitating Malaysian companies to assess and manage their risks.