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Enterprise Risk Management Practices In Listed Croatian Companies

Author

Listed:
  • Milos Sprcic, Danijela

    (Faculty of Economics and Business, University of Zagreb)

  • Pecina, Ena

    (Faculty of Economics and Business, University of Zagreb)

  • Orsag, Silvije

    (Faculty of Economics and Business, University of Zagreb)

Abstract

The purpose of this research is to (1) explore Enterprise Risk Management (ERM) practices in Croatian companies, (2) establish ERM maturity Index, (3) define level of ERM development of Croatian companies, (4) analyse organizational aspect of risk management, methods of risk assessment and types of risk managed in Croatian companies. With that aim, conceptual research combined with survey among top management in Croatian listed companies was conducted. Based on the results it can be concluded that ERM is mainly underdeveloped in Croatian companies. Most of the analysed companies have low values of ERM Index, with intimidating 38% of companies not having any of ERM system elements. The most worrying result is that even 28% of analysed companies do not manage risks at all. Many important types of risks are neglected, so as methods of risk measurement are simple and outdated. Contribution of this paper is twofold. This is the first research conducted to explore ERM practices in detail, in which ERM Index as a measure of the maturity of ERM process is developed. Secondly, this paper brings recommendations to Supervisory and Management Board, as well as to Regulators, which could initiate broader ERM implementation and development in Croatian companies.

Suggested Citation

  • Milos Sprcic, Danijela & Pecina, Ena & Orsag, Silvije, 2017. "Enterprise Risk Management Practices In Listed Croatian Companies," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 8(3), pages 219-230.
    • Handle: RePEc:ris:utmsje:0216
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    References listed on IDEAS

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    Cited by:

    1. Ivana Dvorski Lacković & Danijela Miloš Sprčić, 2024. "Enterprise risk management and organizational performance: exploring mediation effects of entrepreneurial orientation," Risk Management, Palgrave Macmillan, vol. 26(3), pages 1-23, September.
    2. Minela Nuhic-Meskovic & Admir Meskovic, 2023. "Risk Management Culture, Structure, and Process: Theoretical Insights and Empirical Evidence," International Business Research, Canadian Center of Science and Education, vol. 16(10), pages 1-10, October.
    3. Ivana Dvorski Lacković & Nataša Kurnoga & Danijela Miloš Sprčić, 2022. "Three-factor model of Enterprise Risk Management implementation: exploratory study of non-financial companies," Risk Management, Palgrave Macmillan, vol. 24(2), pages 101-122, June.

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    More about this item

    Keywords

    Enterprise Risk Management; ERM maturity Index; Risk Management practices;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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