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Title: Enterprise risk management : maturity progression, value creation & future evolution
Author: Farrell, Mark Andrew
ISNI:       0000 0004 6057 4655
Awarding Body: Queen's University Belfast
Current Institution: Queen's University Belfast
Date of Award: 2016
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It is critical to determine whether ERM creates value to ensure that the significant resources deployed in ERM programmes result in tangible corporate value. This thesis analyses the valuation implications of ERM maturity using The Risk and Insurance Management Society Risk Maturity Model (RIMS RMM) data collected from 2006 to 2011 using a 5-point maturity scale. The results, measured by Tobin’s Q, suggest that firms that have reached mature levels of ERM exhibit higher firm values, demonstrating a statistically significant positive relation to the magnitude of 25 percent. Upon decomposition of the maturity score, the most meaningful aspects of ERM relate to top-down executive engagement and the resultant cascade of ERM culture throughout the firm. In addition to serving as one of the first studies to establish strong empirical evidence for ERM increasing firm value, the thesis extends its contribution to examine the firm performance implications of ERM maturation under different models, specifically identifying characteristics that engender or inhibit the aforementioned valuation implications. A discussion of how an ERM programme could significantly affect an organisation’s policies and relationship with stakeholders is also explored. ERM is theoretically projected to be a means to help strengthen the relationship that companies have with regulators, reinforce or repair relationships with shareholders, strengthen interactions with supply chain stakeholders, enhance reputational relations with clients and improve auditor partnerships. The thesis concludes by arguing that ERM has now reached a critical mass, such that further adoption and development of the ERM discipline is now inevitable.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available