The Influence of Managers’ Characteristics on Risk Management Practices in Public Listed Companies (PLCs) Of Malaysia

Mohd Rasid Hussin and Ahmad Shukri Yazid

International Journal of Management Sciences, 2013, vol. 1, issue 8, 282-289

Abstract: Risk management as a dynamic scientific discipline and a structured response to risk has become increasingly important among businesses and industries worldwide. Relevant literature in this area of specialization is still lacking amongst developing countries including Malaysia. This particular study aims at examining how the managers’ characteristics could influence the way they manage risk for their companies/organizations. Based on an industry-wide survey conducted on Chief Executive Officers (CEOs) of Public Listed Companies in the Malaysian Bourse, some interesting and important findings were revealed. First, younger and junior CEOs appear to be more pro-active and more willing to take risks while the older or senior ones were more risk averse and more conservative in their approach and risk decision-making especially. Second, experienced CEOs differed significantly from others in their overall perception of risk especially with regard to financial risk. Third, surprisingly, the Malay CEOs were found to be much more concerned in respect of financial risks compared to their Chinese counterparts. The overall results provide a new insight into the managers’ traits and relationship with the way they perceive and manage the various potential risk exposures facing their companies and organizations.

Keywords: Risk management; Managers’ traits; Public listed companies (search for similar items in EconPapers)
Date: 2013
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