Enterprise Risk Management Adoption and Financial Benefits Creation: Examining the Contributions of COSO ERM Maturity and Board of Directors

Sanambar Tavakoli, Noraini Binti Abu Talib, Ehsan Kish Hazrat Soltan


Studies on Enterprise Risk Management (ERM) have been extensively done in recent years. But, in effect exploit of ERM in order to make business value has been confused many firms. Consequently, the aim of this paper is to propose a conceptual framework for COSO ERM adoption and ERM maturity which were not documented well in the literature. This paper by spread over previous studies, theories and conceptual frameworks try to extant a new conceptual framework that add value to the ERM to becoming empirically linked to the expected financial benefits of ERM deployment and discourses the effect of this new approach on board of directors’ monitoring and ERM maturity to improved business performance, enhanced financial results, and risk modification. The paper make a bridge to fill up a research gap in how ERM deployment and ERM maturity impact financial performance and similarly the need to a conceptual model prearranged to offer approach into expected financial benefits of ERM.


Enterprise risk management, COSO ERM adoption, Board of directors’ monitoring, ERM maturity, Firm financial performance

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