Enterprise Risk Management Assessment of Romanian Listed Companies for Sustainable Development

Abstract

Introduction: Enterprise risk management (ERM) is a process that identifies how firms manage risks. In recent years, a growing number of companies in emerging economies have begun to implement a holistic framework for risk management for sustainable development.

Aim: The aim of this chapter is to assess the sustainability risk management based approach to economic, social and governance performance. Analysis will be performed on a sample of Romanian listed companies to assessment the significant risks identified by them. Current study undertakes these important issues and configures ambitious theoretical and empirical research to strengthen the knowledge in this scientific field.

Method: The data used for the companies in the sample included companies listed on the Bucharest Stock Exchange in Romania and was taken from the annual reports published by these companies available for the years 2018 and 2019. The sustainability activities were analyzed and an index was calculated for all activities identified in order to assess the risk management.

Findings: Especially the aggregation of risk and the quality of derivation of risk exposure is highly questionable. The number and proportion of risks reported have also changed, although some risks have always been reported frequently. Our results provide support for the recent pressure generated by the COVID-19 pandemics, on firms to adopt more integrated and comprehensive risk management systems.

Citation

Hategan, C.-D., Sirghi, N. and Pitorac, R. (2022), "Enterprise Risk Management Assessment of Romanian Listed Companies for Sustainable Development", Grima, S., Özen, E. and Gonzi, R.E.D. (Ed.) Insurance and Risk Management for Disruptions in Social, Economic and Environmental Systems: Decision and Control Allocations within New Domains of Risk (Emerald Studies in Finance, Insurance, and Risk Management), Emerald Publishing Limited, Leeds, pp. 107-116. https://doi.org/10.1108/978-1-80117-139-720211006