The IMPACT OF ENTERPRISE RISK MANAGEMENT (ERM) ON SMES FIRM PERFORMANCE IN GHANA

Abstract

This study delves into the complex landscape of enterprise dynamics, examining the intricate relationships between Enterprise Risk Management (ERM), firm size, and their consequential impacts on financial and operational performance. Utilizing robust regression analyses, the study unveils a significant correlation between effective ERM implementation and heightened levels of both financial and operational success. Larger firms, with their expansive organizational footprint, exhibit a resolute commitment to the comprehensive embrace of ERM practices. The results emphasize that an extensive part of the variability in fiscal performance and operational performance can be attributed to ERM implementation. This underscores the pivotal role of ERM as a linchpin for success in both financial and operational domains. The study sheds light on the strategic value placed on navigating complex risk landscapes, particularly emphasizing how larger organizations demonstrate a more robust commitment to ERM practices. In essence, this research offers a panoramic view of the intricate relationships shaping contemporary enterprises. It establishes ERM as a critical element for organizational triumph and underscores the considerable effect of firm size on the adoption and efficacy of risk management practices. Beyond theoretical insights, our findings provide actionable implications for organizations seeking to fortify their foundations in an era defined by dynamic risks and opportunities.