Enterprise Risk Management and Firm Performance Validated Through Economic Value Added Factors

Enterprise Risk Management (ERM) is an essential
technique, used to manage a myriad of risks in a holistic manner.
This paper presents an ERM implementation framework which is
operationalized by fourteen elements. It highlights the impact of
ERM towards the firm’s performance measured through Economic
Value Added (EVA) factors. The research design incorporates
descriptive and cross-sectional analysis. Data was collected from 120
public listed companies in Bursa Malaysia through questionnaires
survey. Results of the empirical analysis show that ERM
implementation has significant positive impact on firm’s
performance. The results support the hypothesis that the firms which
implements ERM will enhance their performance as validated
through the perceived measurement of EVA factors. This study offers
a perspective of measuring ERM implementation impact through
EVA factors as compared to the accounting measures.