Enterprise risk management (ERM) is a widespread technique that integrates various methods in evaluating and minimizing all risks confronting firms. The application of this holistic approach to a firm’s complete risk outlook includes strategies and processes used by firms to manage risks and seize opportunities that arise in achieving firm’s objectives. Despite the recognition of the benefits of ERM implementation with enhanced organization performance, many firms are yet to adopt ERM in Nigeria as there are few of such studies that have investigated the drivers of implementing ERM framework. This study therefore considered the common factors responsible for ERM framework adoption by Nigerian public listed firms using logistic regression. The result shows that size of firm, firm industry, firm complexity, the independency of board directors, using one of the big Four auditor and multinational diversity are significant factors of ERM framework implementation among public listed firms. The findings of this study has practical relevance for practitioners as it suggest that when deciding whether or not to apply ERM, businesses should examine both internal and external issues to identify which firm-specific factors necessitate the use of an ERM framework.
MESIKE et al. (Thu,) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: