Enterprise Risk Management Practices among Listed Firms on the Ghanaian Equity Market

Enterprise risk management (ERM) implementation is on the ascendancy as it determines business performance and survival. ERM supports firms to manage risks in an enterprise-wide system. Most research work conducted on ERM focused on the value creation activity of ERM without explicitly looking at how it is being practiced in the various firms. The objective of this study is to assess Enterprise Risk Management (ERM) practices among listed firms on the Ghanaian Equity Market. This research uses a qualitative approach to assess enterprise risk management practices among listed firms in Ghana as well as the difference in the enterprise risk management practices between financial and non-financial firms. The researcher used a primary data which captures information such as firm characteristics, elements of risk management practices and enterprise risk management among the listed firms.The findings of this study revealed some differences in the risk management practices for financial and non-financial firms. Majority of the financial firms have implemented ERM and have a risk management committee, they also have risk management manual which states its risk policy and risk appetite levels but very few of the non-financial firms have implemented ERM and have a risk management manual. Also, the study revealed that most of the listed firms lack risk management experts and hence still operate in the silo risk management system. The study suggests that a good risk management practice will improve business efficiency and effectiveness hence proper risk management techniques and experts should be adopted.