The Relation between ERM Techniques and Performance of Food Industry firms

Abstract

Changes in the business environment have caused changes in risk management approach from atomistic into the holistic one. The aim of this study is to examine the relation between Enterprise Risk Management techniques and organizational performance. The sample includes food industry firms listed in TSE from at least one year ago. This study uses Coso book model for quantification of Enterprise Risk Management. Also the Pearson correlation test has been used to examine the relation between independent variable (Enterprise Risk Management) and dependent variable (Organizational performance). The results indicate a significant positive relation between Enterprise Risk Management and Organizational performance; also examination of sub- hypotheses shows that only strategic risk management has no relation with organizational performance.

Keywords

• ERM
• Organizational Performance
• Strategy risk management