Enterprise Risk Management on Business Performance: A Quantitative Analysis of Local Businesses in Surigao del Norte, Philippines

Abstract

The study aimed to assess Enterprise Risk Management (ERM) observance and performance variables among local businesses, conducted through non-probability purposive sampling. Utilizing statistical tools like mean, standard deviation, analysis of variance, and Pearson rho, the study revealed a concentration on grocery owners (43%) and businesses operating for 6 to 10 years (52%). ERM observance exhibited a strong commitment to compliance, financial, operational, reputational, and strategic practices, while performance, rated very high, encompassed financial, customer satisfaction, and market share factors. Significantly, the study identified a positive relationship between financial ERM observance and overall performance. The study emphasized business owners' dedicated ERM commitment, positively influencing business performance. Thus, fostering teamwork, incentivizing ERM adherence, disseminating ERM knowledge, and encouraging continuous learning, aiming to establish a robust ERM framework for proactive risk mitigation and strategic decision-making.