ABSTRACT
This study explores the compliance of Malaysian listed companies to the Statement of Risk Management and Internal Control (SRMIC). Risk management and internal control (RMIC) are vital for an effective corporate governance. Effective risk management system helps companies achieve targeted performance. Internal control system provides reasonable assurance that an adverse impact arising from future event is at an acceptable level. In 2015, SRMIC commissions the need to examine the compliance to its requirements. Annual reports of 746 companies listed on the Bursa Malaysia for 2015 and 2016 were examined. Findings show that only 2.5% companies disclose all the mandatory risk management items and only 0.01% of companies disclose all internal control information. Companies voluntarily disclose information on external auditors, internal audit function, internal control opinion, risk appetite, and soundness of the RMIC system. The findings evidence the companies’ engagements towards the demands for a more effective corporate governance.
