Determinants of Enterprise Risk Management Implementation in Multinational Corporations
This study investigates the key factors influencing the implementation of enterprise risk management (ERM) within multinational corporations. By analyzing survey responses from 309 participants across the three lines of defense and reviewing 151 peer-reviewed articles, the authors identify six significant determinants and one non-significant factor affecting ERM adoption. The developed model demonstrates strong predictive power with an R-squared value of 75.40%, highlighting the critical importance of leadership, frameworks, controls, and communication in strengthening ERM practices. The research provides valuable insights for ERM implementers, senior executives, and boards of directors regarding the acceptance and maturity of risk management systems. To enhance governance clarity and implementation success, the authors recommend active engagement of leadership and stakeholders, the development of customized frameworks, improved communication channels, regular readiness assessments, and robust board-level oversight. This empirical evidence supports the strategic adoption of ERM to handle interrelated risks in increasingly complex business environments, offering a conceptual model that firms can utilize to optimize their risk management deployment and overall organizational resilience.
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Determinants of Enterprise Risk Management Implementation in Multinational Corporations
This study investigates the key factors influencing the implementation of enterprise risk management (ERM) within multinational corporations. By analyzing survey responses from 309 participants across the three lines of defense and reviewing 151 peer-reviewed articles, the authors identify six significant determinants and one non-significant factor affecting ERM adoption. The developed model demonstrates strong predictive power with an R-squared value of 75.40%, highlighting the critical importance of leadership, frameworks, controls, and communication in strengthening ERM practices. The research provides valuable insights for ERM implementers, senior executives, and boards of directors regarding the acceptance and maturity of risk management systems. To enhance governance clarity and implementation success, the authors recommend active engagement of leadership and stakeholders, the development of customized frameworks, improved communication channels, regular readiness assessments, and robust board-level oversight. This empirical evidence supports the strategic adoption of ERM to handle interrelated risks in increasingly complex business environments, offering a conceptual model that firms can utilize to optimize their risk management deployment and overall organizational resilience.
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