The influence of tone at the top management level and internal audit quality on the effectiveness of risk management practices in the financial services sector
| Autor: | Sharon Nuwasiima, Frank Kabuye, Nicholas Bugambiro, Sharon Naigaga, Irene Akugizibwe |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2019 |
| Předmět: |
Organizational Behavior and Human Resource Management
HF5001-6182 Strategy and Management media_common.quotation_subject education Accounting Management Science and Operations Research ddc:650 0502 economics and business Top management Management. Industrial management Quality (business) Business Business and International Management tone at the top management level internal audit quality Financial services Risk management media_common Marketing business.industry 05 social sciences financial services firms HD28-70 Tone (literature) risk management practices Internal audit Business Management and Accounting (miscellaneous) 050211 marketing 050203 business & management |
| Zdroj: | Cogent Business & Management, Vol 6, Iss 1 (2019) |
| ISSN: | 2331-1975 |
| Popis: | The purpose of this study is to examine the contribution made by the tone at the top management level and internal audit quality on the effectiveness of risk management practices (RMPs) in the financial services sector. This study is cross-sectional and correlational, and it uses firm-level data that were collected by means of a questionnaire survey from a sample of 62 financial services firms in Uganda. Results suggest that the tone at the top management level and internal audit quality are both significant predictors of effective RMPs. However, the predictive potential of tone at the top management level towards effective RMPs reduces when internal audit quality is present. These results support the idea that in terms of agency theory, top management should oversee and review the organization's risks as a way of spearheading effective RMPs. Similarly, internal auditors should sufficiently and appropriately review and coordinate risk management efforts in the organization, since high-quality internal audits lead to effective RMPs. Top managers of financial services firms should encourage periodic reviews of the appropriateness and effectiveness of risk management systems and controls. At the same time, regulators should ensure that top managers of financial services firms have adequate risk management expertise, with no conflict of interest and apply mechanisms that detect significant risks in time. The study contributes to the strategic risk management position by showing that the tone at the top management level and internal audit quality sets pace for an organization culture towards effective RMPs. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|
| Nepřihlášeným uživatelům se plný text nezobrazuje | K zobrazení výsledku je třeba se přihlásit. |