Enterprise Risk Management (ERM) Effectiveness During Global Crises

Abstract

This study examines the effectiveness of enterprise risk management in helping organizations navigate global crises characterized by severe disruptions, uncertainty, and heightened financial pressures. The review aims to clarify Enterprise Risk Management’s role by synthesizing recent empirical findings on how integrated risk frameworks support preparedness and resilience during large-scale shocks. The results indicate that firms with more mature ERM practices achieve stronger performance, enhanced governance, and greater adaptability when confronting crisis conditions. The article discusses how ERM effectiveness is shaped by managerial involvement, risk culture, and the depth of integration into strategic planning. It also highlights differences in outcomes across organizational contexts, showing that ERM contributes most when supported by strong oversight structures and timely risk information. Overall, the study finds that ERM strengthens stability and crisis response capabilities, although its impact depends heavily on implementation quality and organizational readiness.