From Risk to Value: A Systematic Review of the Value-creating Effect of Enterprise Risk Management

Enterprise risk management (ERM) helps to enhance firm performance in the complex and volatile environment (COSO, 2017). Previous review (Horvey and Odei-Mensah, 2023) underlines the insufficient concern of ERM effect in developing economies, which motivating sustained academic interest in the value-creating effect of ERM. Hence, this study aims to present an undated map of the value-creating effect of ERM. Based on the analysis of 79 empirical studies (2000–2024), we find the main targeted region shift from developed economies to developing economies since 2016. Consistent with the mainstream findings of developed economies, the value-creating effect of ERM is well supported in developing economies. However, empirical findings remain divergent, particularly for studies in developing economies. Therefore, we encourage scholars to further explore the maturity and effect of ERM in developing economies. To achieve a deeper understanding of ERM practice, future research should be directed toward the value-creating mechanism of ERM.