Influence of Enterprise Risk Management (ERM) on Perceived Organizational Performance: Evidence From Chinese-based Organizations

Abstract

In today's modern society, entrepreneurs are more concerned with corporate performance and its influencing factors. Due to their weak organizational performance, risk management in Chinese corporations has been examined in this study. The three central Enterprise Risk Management (ERM) variables — risk assessment, risk communication, and risk monitoring — were analyzed as the independent variables influencing the performance of Chinese organizations. The relationship between these variables and the perceived performance of organizations has been assessed using a quantitative method involving multiple linear regression. The survey is conducted via the online platforms of crucial organizations in China, with online questionnaires designed to address the aims of this research. A simple random sample of 300 participants was chosen to satisfy the study's objectives. According to the study's findings, all three components of ERM, namely risk management, risk communication, and risk monitoring, significantly impact organizational performance.