Does Audit Committee Matter In Risk Management Practices? A Case Study Of Public Statutory Corporations In Tanzania
Keywords:
Audit Committee, Risk Management Practices, Public Statutory CorporationsAbstract
The study was designed to review the contribution of the audit committee in overseeing the efficiency of risk management practices in public statutory corporations in Tanzania Data was collected using a self-administered questionnaire completed by 424 chief internal auditors and directors of finance from Public Statutory Corporations (PSCs) located in different parts of Tanzania and analysed using SmartPLS (PLS-SEM) version 4.0. The study examined how audit committee size, independence, and meetings significantly enhance risk management practices within public statutory corporations in Tanzania. The study discovered that audit committee size, independence, and meetings significantly predict the effectiveness of risk management practices in PSCs, and the audit committee is an important corporate governance tool to bridge the information asymmetry gap between the principal and agent. In general, the results can be used by policymakers, public statutory corporations, and the Tanzanian government to strengthen the audit committee’s oversight role, improve internal control systems, and create suitable strategies that will successfully execute risk management practices and ultimately accomplish their strategic objectives.
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