Published date: Dec 07 2023

Journal Title: KnE Social Sciences

Issue title: The International Conference on Environmental, Social and Governance (ICESG 2022)

Pages: 487–504

DOI: 10.18502/kss.v8i20.14622

Bilal Mukhtarbilal_20000996@utp.edu.myDepartment of Management & Humanities, Universiti Teknologi PETRONAS, Seri Iskandar 32610, Malaysia

Putri Nurul Syafeera Binti Mohd RizalDepartment of Management & Humanities, Universiti Teknologi PETRONAS, Seri Iskandar 32610, Malaysia

Muhammad Kashif ShadDepartment of Management & Humanities, Universiti Teknologi PETRONAS, Seri Iskandar 32610, Malaysia

Haryanni HarunMajuperak Holdings Berhad, Ipoh 31350, Perak

Zurul'ain Izzaty Binti JantanMajuperak Holdings Berhad, Ipoh 31350, Perak

Mohamad Harris Fitri Mohamad FadzirMajuperak Holdings Berhad, Ipoh 31350, Perak

Enterprise Risk Management (ERM) is an approach that systematically assesses, treats, monitors, and reviews risks to enhance an enterprise’s value and its ability to anticipate and prepare for imminent risks. Previous studies have mainly focused on the impact of ERM implementation on financial performance, while its relationship with non-financial performance, particularly sustainability performance, has received less attention. This study aims to explore the level of ERM implementation and develop a framework to investigate its effect on sustainability performance, encompassing economic, environmental, and social aspects. The study proposes a questionnaire survey to be distributed to respondents involved in risk management implementation, such as the risk committee, risk management workgroup, and the top corporate risk working group, among state government-linked companies. By gathering insights on companies’ ERM implementation and sustainability performance, the study aims to conceptualize the relationship between the two. For data analysis, the statistical package for social sciences (SPSS) is proposed to investigate relationships between constructs and latent variables. Understanding the penetration level of ERM implementation and its impact on sustainability performance will offer valuable insights for formulating strategies to improve the overall performance of state government-linked companies.

Keywords: enterprise risk management, sustainability performance, COSO framework, government linked companies

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