The value added to stakeholders from the implementation of risk management driven through regulation

This research aims to determine the value added to stakeholders from the implementation of risk management driven through regulation. An initiative to introduce risk management regulations to insurance companies in South Africa started in 2009. The cost of implementing risk management is material...

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Main Author: Subbiah, Deshni
Other Authors: Konar, Len
Language:en
Published: University of Pretoria 2018
Subjects:
Online Access:http://hdl.handle.net/2263/64826
Subbiah, D 2017, The value added to stakeholders from the implementation of risk management driven through regulation, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/64826>
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spelling ndltd-netd.ac.za-oai-union.ndltd.org-up-oai-repository.up.ac.za-2263-648262020-06-02T03:18:42Z The value added to stakeholders from the implementation of risk management driven through regulation Subbiah, Deshni Konar, Len ichelp@gibs.co.za UCTD This research aims to determine the value added to stakeholders from the implementation of risk management driven through regulation. An initiative to introduce risk management regulations to insurance companies in South Africa started in 2009. The cost of implementing risk management is material and therefore, value must be derived to justify the costs. However, literature shows that regulation may not always be effective at achieving its intended purpose and may result in unintended consequences. The financial results of South African insurance companies before and after the implementation of risk management were compared. Statistical testing showed that there was no significant change to the financial results, even though significant costs have been incurred. It seems that risk management may have been implemented as a symbolic gesture to meet the requirements of the Regulator, but was not necessarily seen to be adding value. The inappropriate implementation of risk management may have unintended negative consequences from the high costs incurred, to employees and management in terms of job security and compensation; to investors in terms of the attractiveness of the insurance industry; to customers in terms of higher premiums; and to the Regulator in terms of reduced sustainability and stability of the industry. Mini Dissertation (MBA)--University of Pretoria, 2017. lt2018 Gordon Institute of Business Science (GIBS) MBA Unrestricted 2018-05-11T09:02:32Z 2018-05-11T09:02:32Z 30-03-18 2017 Mini Dissertation http://hdl.handle.net/2263/64826 Subbiah, D 2017, The value added to stakeholders from the implementation of risk management driven through regulation, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/64826> 16393300 en © 2018 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. University of Pretoria
collection NDLTD
language en
sources NDLTD
topic UCTD
spellingShingle UCTD
Subbiah, Deshni
The value added to stakeholders from the implementation of risk management driven through regulation
description This research aims to determine the value added to stakeholders from the implementation of risk management driven through regulation. An initiative to introduce risk management regulations to insurance companies in South Africa started in 2009. The cost of implementing risk management is material and therefore, value must be derived to justify the costs. However, literature shows that regulation may not always be effective at achieving its intended purpose and may result in unintended consequences. The financial results of South African insurance companies before and after the implementation of risk management were compared. Statistical testing showed that there was no significant change to the financial results, even though significant costs have been incurred. It seems that risk management may have been implemented as a symbolic gesture to meet the requirements of the Regulator, but was not necessarily seen to be adding value. The inappropriate implementation of risk management may have unintended negative consequences from the high costs incurred, to employees and management in terms of job security and compensation; to investors in terms of the attractiveness of the insurance industry; to customers in terms of higher premiums; and to the Regulator in terms of reduced sustainability and stability of the industry. === Mini Dissertation (MBA)--University of Pretoria, 2017. === lt2018 === Gordon Institute of Business Science (GIBS) === MBA === Unrestricted
author2 Konar, Len
author_facet Konar, Len
Subbiah, Deshni
author Subbiah, Deshni
author_sort Subbiah, Deshni
title The value added to stakeholders from the implementation of risk management driven through regulation
title_short The value added to stakeholders from the implementation of risk management driven through regulation
title_full The value added to stakeholders from the implementation of risk management driven through regulation
title_fullStr The value added to stakeholders from the implementation of risk management driven through regulation
title_full_unstemmed The value added to stakeholders from the implementation of risk management driven through regulation
title_sort value added to stakeholders from the implementation of risk management driven through regulation
publisher University of Pretoria
publishDate 2018
url http://hdl.handle.net/2263/64826
Subbiah, D 2017, The value added to stakeholders from the implementation of risk management driven through regulation, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/64826>
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