The effect of enterprise risk management (Erm) on organizational performance: Empirical investigation from the diversified industry of United Arab Emirates

Abstract

This study aims to investigate and understand the diverse effects of enterprise risk management (ERM) on organizational performance in the United Arab Emirates small and medium-sized enterprises (SMEs). A ques-tionnaire was used to gather data from 323 respondents operating in United Arab Emirates’ emerging market. The proposed study’s hypotheses are tested through multiple regression techniques. The reliability study of the descrip-tive and inferential statistical study, T-Distribution, F-Test, Variance Inflation Factor, Durbin-Watson Test assess suitability, significance, and degree of error between enterprise risk management against organizational performance. The regression and Correlation test revealed the effect of risk management including knowledge sharing, organizational culture and enterprise risk management on organizational performance. ANOVA test also used to measure the dispar-ity between knowledge sharing and performance in the organization. Also, R-square tests to assess the degree of organisational culture prediction over organizational performance. Results show a substantial positive effect between knowledge sharing, organizational culture, and enterprise risk management β= .242,.362,.113, respectively, p 0.05 against the organizational performance of SMEs in the United Arab Emirates.