corporate risk management and its components on corporate bankruptcy risk

Subject Areas : Journal of Investment Knowledge

Alireza Rouzbahanai Pari ¹ (Phd Student, Department of Accounting, Islamic Azad University, Noor Branch, Noor, Iran.)
javad ramezani ² (Assistant Professor, Department of Accounting, Islamic Azad University, Qaemshahr Branch, Qaemshar, Iran)

Received: 2020-02-13 Accepted : 2020-08-22 Published : 2022-09-23

Keywords: Strategic Risk Management Implementation, Corporate Risk Management Implementation, Operational Risk Management Implementation,

Abstract :

Corporate Risk Management promotes traditional risk management by adopting a holistic approach to all corporate risks in relation to a set and partial perspective. , and thus ensures that strategic and operational profitability opportunities (in relation to the risk accepted) are used. Corporate risk management has a strong impact on fostering a strong and consistent risk culture in the organization, with clear responsibility for corporate risks, including bankruptcy risk. Risk management operations have shifted from a control role to a change agent and coordinator of risk management activities so that risks are explicitly accepted by those responsible for risk decision-making.Therefore, in this study, we evaluated the impact of Corporate Risk Management (ERM) on bankruptcy risk using weed and particle mass optimization algorithms. For this research, a sample of 107 companies was selected from the companies listed in Tehran Stock Exchange using sampling method. This research was conducted in the Tehran Stock Exchange for the period 2013-2014. The statistical method used in this research is multivariate regression method using panel data and optimized algorithm. The results showed that: Corporate Risk Management Implementation, Strategic Risk Management Implementation, Operational Risk Management Implementation, Reporting Risk Management Implementation, and Non-Compliance Risk Management Implementation affect bankruptcy risk. Weed optimization algorithm and particle mass optimization algorithm can predict bankruptcy risk using Corporate Risk Management (ERM) components. And it is more capable of weed optimization algorithm than particle mass optimization algorithm for predicting companies' bankruptcy risk by using corporate risk management (ERM) variables.

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