Enterprise Risk Management

Abstract

In India, all the industries are exposed to many predictable and unpredictable risks all through its business cycle, which might have an immense effect on the performance of the company. To attend such uncertainties, SEBI has made it compulsory for the companies to have a risk management policy and a risk management committee. Many top companies have adopted internationally accepted Enterprise Risk Management framework, to have a positive impact on its financials and non- financials and increase its value among stakeholders. This study examines the determinants and effects of ERM adoption for 15 companies in 3 different industries which are listed in Indian stock exchanges. It further examines what is the effect of ERM framework on the performance of the company, how the companies have implemented the framework in its organisation and how its competitors have implemented. Based on it which framework has generated better results and how it helped in the decision making process of the company.