Enterprise Risk Management Program Effectiveness, Determinants, Execution and effect on Financial Performance: Evidence from Global Takaful Industry

Abstract

This study has been conducted with an aim to fnd the impact of Enterprise Risk Management (ERM) Implementation on the Financial Performance of the world Takaful Industry. In this regard, ERM implementation level has been measured. There are also employed two control variables in the study that are age and Gross Domestic Product (GDP). On the other side the fnancial performance is measured in terms of its indicators Return on Investments (ROI) and Earnings Per share (EPS). A sample of 30 Takaful Firms from 10 countries has been taken for a period of 4 years (2014-2017). The study is quantitative in nature and secondary data has been used for this purpose. The hypotheses are being tested one by one through correlation and regression analysis. The fndings can be utilized for the advancement of ERM within the Takaful Industry, making it strength of industry rather than a business risk.