International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

Providing a framework for identifying and assessing the risks faced by subsidiaries in holdings: Emphasizing on the Impact of the parent company's strategies

Document Type : Original Article

Authors
Saeid Khanipour 1
Narges Yazdanyan 2
Shadi Shahverdiani 3
1 PhD Candidate in Financial Engineering, Roudehen Branch, Islamic Azad University, Roudehen, Iran
2 Assistant Professor of Accounting, Department of Accounting, Roodehen Branch, Islamic Azad University, Roodehen, Iran.
3 Assistant Professor, Department of Business Management, Shahr-e-Quds Branch, Islamic Azad University, Tehran, Iran
10.30495/ijfma.2022.19900
Abstract
In the structure of holdings, the main activity on investment and management is generally focused on companies called subsidiaries. thus risk management in subsidiaries (as the risk management of investments by the holdings), is too importance. Therefore, in this study, in the form of providing a framework, the effective risks of subsidiaries on the strategies of the parent company have been evaluated and analyzed.
To extract the initial list of types of risks related to the main activity of the holding, library studies and then utilizing the delphi technique and questionnaire tools, the opinion of two groups of specialists, including experts in the field of risk and industry experts, were used to categorize and extract the final risk factors related to the industry in question in Iran. In the quantitative part of the research and in order to determine the risk components for compiling the risk map and ranking it, the opinions of the audit/risk committees of the subsidiaries have been used in the form of an open questionnaire. Using the obtained results, the holding company will be able to identify the types of risks affecting its subsidiaries and determine their relationship with the parent company’s strategy to manage them in the form of an enterprise risk management program as part of its strategic planning.
Keywords
Enterprise Risk Management
Holding Company
Risk Map
Risk Scoring
Risk Evaluation
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