The Effect of Enterprise Risk Management Implementation on Company Performance

Abstract

This study aims to review the relationship between the implementation of Enterprise Risk Management and company performance through a literature review approach to Google Scholar-indexed empirical articles over the past five years. The results of the literature synthesis show that the application of Enterprise Risk Management in general has a positive effect on profitability, operational efficiency, and company value. Enterprise Risk Management functions not only as a risk control mechanism but also as a strategic tool that can improve the competitiveness, managerial effectiveness, and resilience of organizations in the face of the uncertainty of the business environment. However, the effectiveness of implementing Enterprise Risk Management is highly dependent on internal factors such as the quality of corporate governance, intellectual capital, and risk culture, as well as external factors such as transparency of risk disclosure and dynamic market conditions. In practical terms, the results of this study confirm the importance of integrating Enterprise Risk Management into the company's strategic policies to create sustainable performance. These findings are expected to strengthen the theoretical foundation, contribute to managerial decision-making, and serve as a reference for future empirical research