Please use this identifier to cite or link to this item:
Title: Risk management practices adopted by financial firms in Malta
Authors: Bezzina, Frank
Grima, Simon
Mamo, Josephine
Keywords: Corporate governance -- Malta
Business enterprises -- Risk management -- Malta
Social responsibility of business
Issue Date: 2014
Publisher: Emerald Group Publishing Limited
Citation: Bezzina, F., Grima, S., & Mamo, J. (2014). Risk management practices adopted by financial firms in Malta. Managerial Finance, 40(6), 587-612.
Abstract: The purpose of this paper is to bring to light the risk management practices adopted by financial firms in the small island state of Malta. It seeks to: first, identify the risk management strategies and mechanisms that these firms adopt to manage risks, maximise opportunities, and maintain financial stability; second, determine whether these practices are perceived as contributing to principled performance; third, examine the extent to which risk management capabilities offer competitive advantage to firms, and fourth, investigate whether corporate social responsibility (CSR) is a key driver of risk management corporate strategies. Design/methodology/approach; A self-administered questionnaire purposely designed for the present study was distributed among the 156 credit institutions, investment firms and financial institutions registered with the Malta Financial Services Authority. Overall, 141 firms participated in the study (a response rate of 90.4 per cent) and the responses were subjected to statistical analysis in an attempt to answer four research questions. Findings; Maltese financial firms have sound risk management practices that link positively with added value and principled performance. Although competitive advantage has been given less weight by these firms, the implemented risk management mechanisms allow for a strong risk culture, defined risk management goals, accountability and continual improvement. CSR forms part of the firms’ risk management corporate strategies and is valued as part of these firms’ corporate culture, while financial/economic factors are viewed as key in driving effective risk management principles. Originality/value; The study provides empirical evidence that securing “best practice” in firms’ risk management corporate culture is seen as better predicated on maximising financial advantage (“the instrumental driver”) rather than simply reflecting externally imposed standards (“the compliance driver”).
Appears in Collections:Scholarly Works - FacEMAIns
Scholarly Works - FacEMAMAn

Files in This Item:
File Description SizeFormat 
Risk Management practices adopted by financial firms in Malta.pdf
  Restricted Access
255.53 kBAdobe PDFView/Open Request a copy

Items in OAR@UM are protected by copyright, with all rights reserved, unless otherwise indicated.