RISK ANALYSIS: CASE HENKEL
Abstract:
Current turbulent economic situation impose on enterprises various risks in everyday activities. The latter emphasize the necessity for early identification, reaction and the usage of contemporary methods related to risk quantification. This was a good basis for development of totally new concept called Enterprise Risk Management (ERM). The paper analyze Henkel globally, and the implementation of ERM on company’s example as well. The aim of the paper is to establish the link between ERM concept implementation and the firm’s value. Finally, by using Pearson’s correlation coefficient and linear regression in statistical software MINITAB the hypothesis related to ERM concept implementation and the firms’ value increase has been confirmed. Good organizational structure, with special units designed for risk monitoring and well developed system of internal control, contribute to better ERM implementation, increasing the value for shareholders. However, the concept has been poorly developed in Serbia. Consequently, in the following period it is necessary to raise the awareness related to risk management importance regarding the increase the shareholders’ value through risk management not through risk aversion
CITATION:
IEEE format
L. Barjaktarović, K. Vićentijević, A. Vjetrov, “RISK ANALYSIS: CASE HENKEL,” in FINIZ 2014 - The Role of Financial Reporting in Corporate Governance, Belgrade, Singidunum University, Serbia, 2014, pp. 13-15. doi: 10.15308/finiz-2014-13-15
APA format
Barjaktarović, L., Vićentijević, K., Vjetrov, A. (2014). RISK ANALYSIS: CASE HENKEL. Paper presented at FINIZ 2014 - The Role of Financial Reporting in Corporate Governance. doi:10.15308/finiz-2014-13-15
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