Evaluating the Contribution of Corporate Governance in Formulating Enterprise Risk Management Strategies through a Comparative Sectoral Study
Year: 2025
Type: article
Abstract: Risk management is an imperative part of corporate governance for the purpose of protecting organizational value and maintaining long-run sustainability.This research critically investigates how corporate governance mechanisms affect the effectiveness of enterprise risk management (ERM) in various industrial sectors such as Banking, Manufacturing, and FMCG.Adopting a quantitative comparative research design, secondary financial data and governance information of 30 companies were examined by applying descriptive statistics, regression, and correlation techniques.Findings indicate that strong governance habits-defined as bigger boards with a greater percentage of independent directors-are strongly linked to better risk management performance, indicated through lower financial risk metrics like debt-equity ratios.Expert input and prior research are also included in the study, which suggests the importance of risk-conscious, diversified boards to manage complicated and changing risk environments.These findings highlight the urgency to integrate risk management into corporate governance structures in order to promote organizational resilience, transparency, and stakeholder trust in a rapidly evolving global economy.
Source: Contemporary Social Sciences
Author: Luvnica Verma
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4415029313
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