BKAI3043 Risk Management & Corporate

Governance

SCHOOL OF ACCOUNTANCY
COLLEGE OF BUSINESS
UNIVERSITI UTARA MALAYSIA
SEM A221 (SEM 1 - 2022/2023)

COURSE CODE : BKAI3043

COURSE NAME : RISK MANAGEMENT & CORPORATE
GOVERNANCE
PRE-REQUISITE : BKAA3023 AUDITING & ASSURANCE II
LECTURERS : DR. BASARIAH SALIM
DR. MOHD RAIME RAMLAN

1.0 SYNOPSIS

This subject is designed to provide an understanding towards the concept of risk

management and the importance of managing risks in ensuring the sustainability of
organisation. In addition, this subject explore the risk management framework, process
and it relationship with an internal audit activities. Further, the course also explores the
essential features of corporate governance in term of it concept, development and
mechanisms. Student is also exposed in analysing the principle of good governance and
code of best practice. The syllabus topics have been chosen to allow students the
opportunity to view and understand risk from a range of perspectives and to appreciate
the links between risk management and corporate governance.

COURSE OBJECTIVES

Upon completion of the course, students are expected to understand and apply the
knowledge on how organizations manage the risks and how they implement practices of
good corporate governance principles.

2.0 LEARNING OUTCOMES

Specifically, after completing this course, students are expected to be able to:

1. Explain the concept of risk management and recognise the importance of managing risks
in ensuring the sustainability of organisation.
2. Apply the risk management framework, process and it relationship with an internal audit
activities.
3. Explain the concept, development, and mechanisms in corporate governance.
4. Analyse the principle of good governance and code of best practices.

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3.0 COURSE CONTENT

NO TOPICS REFERENCE HOURS
1.0 1.0 INTRODUCTION TO RISK Hopkin (2020) Ch. 5
MANAGEMENT 1,2,3,4,5,8
1.1 Concept of Risk and Risk Management ISO 31000
1.2 Type of Business Risk COSO Enterprise Risk
1.3 A Brief History of Risk Management Management
1.4 What Is Enterprise Risk Management? Integrated Risk
1.5 The Importance of Enterprise Risk Management
Management Australia/New Zealand
Framework
Orange Book
2.0 2.0 RISK MANAGEMENT FRAMEWORK Hopkin (2020) Ch. 6 5
AND STANDARDS
ISO 31000
2.1 The ISO 31000 Risk COSO Enterprise Risk
Management Framework Management
2.2 Various Risk Management Frameworks
Integrated Risk
2.2.1 COSO – ERM Framework
Management
2.3.2 Australia/New Zealand Framework
2.3.4 British Risk Management Standard Australia/New Zealand
Framework
3.0 3.0 RISK MANAGEMENT PROCESS Hopkin (2020) 6
3.1 Establish the Context Ch.7,10,11,12,13,14,1
3.2 Risk Identification 5,16,17,21.22,23,25
3.3 Risk Analysis COSO Enterprise Risk
3.4 Risk Evaluation Management
3.5 Risk Treatment
3.6 Communication and Consultation Additional readings –
3.7 Monitoring and Review see references

4.0 4.0 KEY PLAYERS AND RISK AWARENESS Hopkin (2020) Ch.24, 5
CULTURE 26, 27, 33,35
4.1 Board Oversight of Risk Management
4.2 Senior Executive Leadership in Lam (2017) Ch. 6
Risk Management
4.3 The Role of the Internal Audit Function IIA Position Paper
in ERM
4.4 The Role of the External Audit Function
in ERM
4.5 The Importance of Risk Culture

5.0 5.0 INTRODUCTION TO CORPORATE Rosli et al., (2019) H. 6

GOVERNANCE 4, 5,6,8
5.1 Concept of Corporate Governance Hopkin (2020) Ch. 28
5.2 Development of The MCCG
Corporate Governance (Revised)., 2021
5.3 Theories in Corporate Governance Mallin C. (2019)
5.4 Relationship of Corporate Governance
and Risk Management Additional readings –
see references
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6.0 6.0 CORPORATE GOVERNANCE Rosli et al., (2019) 6

MECHANISMS Ch.7
6.1 Overview of Governance Mechanisms The Malaysian Code on
6.2 Board of Director Corporate Governance
6.3 Ownership and Control (Revised) 2021.
6.4 Audit Committee
6.5 Institutional Shareholder Mallin C. (2019)
6.6 Director Remuneration
Additional readings –
6.7 Others (Merger and Takeover)
see references

7.0 7.0 CODE OF CORPORATE GOVERNANCE The Malaysian Code on 5

AND BEST PRACTICES Corporate Governance
7.1 The Malaysian Code of (Revised Code) 2021
Corporate Governance
7.2 Best Practices of Corporate Governance Mallin C. (2019)
Around the World
Additional readings –
see references

8.0 8.0 OTHER ISSUES 4

8.1 Financial Reporting and Risk Management Rosli et al., (2019) Ch.3, 8
Disclosure Fraser, J; Simkins, B. J.
8.2 Rating Agencies’ Impact on ERM (2009).
8.3 Corporate Social Responsibilities,
Sustainability, Environmental and Whistle
Blowing Issues
8.4 Current Initiatives and Issues

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4.0 REFERENCES

Hopkin, Paul (2020). Fundamentals of Risk Management: Understanding, Evaluating and

Implementing Effective Risk Management (5th ed.). KoganPage. Available at
https://www.koganpage.com/author/paul-hopkin

Rosli, Mohamad Hafiz., Md Kassim, Aza Azlina and Tamsir, Fazilah., (2019). Corporate
Governance: Principles and Practices in Malaysia, Vol. 1, Oxford Fajar. Available at
https://cw.oxfordfajar.com.my/corpgov
ISO 31000:2018, (2018). Risk management – Principles and guidelines. Available at
https://www.iso.org/obp/ui/#iso:std:iso:31000:ed-2:v1:en

Lam, J. (2017), Implementing Enterprise Risk Management: From Methods to Applications. Wiley.
Available at https://onlinelibrary.wiley.com/doi/book/10.1002/9781118922415

Mallin, C. (2019). Corporate Governance, (sixth edition), Oxford: Oxford University Press.
Available at https://www.vitalsource.com/cart?utm_campaign=buy-
button&utm_medium=publishers&utm_source=oup

The Malaysian code on corporate governance (The Code), 2021 (Revised). Finance
Committee on Corporate Governance. Available at http://www.sc.com.my

Risk Governance (2013). Bank Negara Malaysia. Available at

http://www.bnm.gov.my/index.php?ch=57&pg=144&ac=159&bb=file

The Statement on Internal Control - Guidance for Directors of Public Listed Companies
(2015). Institute of Internal Auditor Malaysia Chapter. Available at
https://www.iiam.com.my/wp-content/uploads/2015/12/guideline-risk-management-new1.pdf

COSO's enterprise risk management framework. Available at

https://www.accaglobal.com/ie/en/student/exam-support-resources/professional-exams-study-
resources/strategic-business-leader/technical-articles/coso-enterprise-risk-management-
framework.html

2017 Enterprise Risk Management— Integrated Framework (2017). Available at

https://www.coso.org/Pages/default.aspx

2013 Internal Control– Integrated Framework (2013). Available at

https://www.coso.org/Pages/default.aspx

Additional reference:

AS/NZS ISO 31000:2009 Risk management—Principles and guidelines, Council of

Standards Australia and New Zealand, November 2009. Available at
https://www.standards.govt.nz/shop/asnzs-iso-310002009/

Duckert, G. H. (2011). Practical Enterprise Risk Management: A Business Process Approach.

Hoboken, New Jersey: John Wiley & Sons, Inc. Available at
https://onlinelibrary.wiley.com/doi/book/10.1002/9781118269060
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Fraser, J; Simkins, B. J. (2009). Enterprise Risk Management (Fraser/Enterprise) || Rating Agencies'

Impact on Enterprise Risk Management. 465–478. doi:10.1002/9781118267080.ch25

Kim, Kenneth A. and Nofsinger, John R., (2007). Corporate Governance, second edition,
Pearson Prentice Hall.

The Orange Book, Management of Risk - Principles and Concepts, Her Majesty (HM)
Treasury Office, October 2013 (Updated 2021). Available at
https://www.gov.uk/government/publications/orange-book

Sobel. P.J (2015). Auditor’s Risk Management Guide: Integrating Auditing and ERM.
Walters Kolwer, 2015 Edition.

5.0 TEACHING METHODS

Mixed method between teacher-centred and student-centred. For the assessment strategy it is
a continuous assessment.

6.0 ASSESSMENT

Coursework – 40%
 Quiz (5%)
 Group Assignment (20%)
 Group Presentation (5%)
 Individual Assignment (10%)

Final Examination – 60%

7.0 ATTENDANCE

Attendance for lectures and tutorials is compulsory. Students who do not fulfill the 80%
attendance requirement will be barred from taking the final examination paper as stated
in the UUM’s Graduation Rules. The 20% absent from lectures and tutorials will include
all reasons including medical leave (MC), death of family members and others.

8.0 ACADEMIC MISCONDUCT

Disciplinary action will be enforced on students caught for unethical behaviour such as
plagiarisms, cheating, copying, and sitting exam for other students and other academic
misconducts.