Malaysian Entities Focusing On Risk Management, Says Ernst & Young

KUALA LUMPUR, March 30 (Bernama) -- Increasing importance is being placed by Malaysian organisations for identification, understanding and management of risks, particularly as they aid in business decision-making, says a report by Ernst & Young and The Institute of Internal Auditors Malaysia. The importance was placed in line with the fact that with better management of risks, business performance would improve and shareholder value enhanced, its said. "Many organisations surveyed believe they have a formal and relatively mature governance, risk and compliance framework in place. However, in the majority of cases, there need to be enhancement in the interconnectivity between risk management, business strategies and key performance indicators. "There appears to be a need for the multiple risk functions within organisations to better align and coordinate their activities to ensure the best possible risk coverage. "Building and embedding a risk-aware culture are paramount in aiding organisations to manage their risks and the results of the survey indicate that there is more to be done in this area," it quoted the report findings in a statement. The main objective of the 2011 Survey on risk management practices in Malaysia is to develop an understanding of the state of risk management practices in Malaysia and the role of internal audit and other risk functions. -- BERNAMA