The Effect of Enterprise Risk Management Implementation on Non-Financial Performance in Jordan Manufacturing Firms: A Review
Abstract
Previous business crises have highlighted the shortcomings in the methodologies employed for risk management within organizations. In response to these problems, organizational risk management has gained importance recently for the oversight of corporate risk. Unlike solo-based risk management, Enterprise Risk Management (ERM) analyses the organization's whole risk exposure in an integrated and complete manner. The execution of such an integrated approach is essential for all organizations of size and types. Therefore, this study aims to investigate how the COSO ERM framework is considered a crucial framework that provides precise direction and guidance in enterprise risk management among manufacturing enterprises in Jordan and its impact on non-financial performance to enable organizations to mitigate risks and losses and exploit the opportunities.? Furthermore, it highlights the prominent role of risk governance including boards of directors, risk committees, chief risk officers, and IT systems as moderators of this relation.
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