As the business world grows in complexity, business leaders are resorting to a robust risk management approach known as enterprise risk management (ERM). ERM is a systematic approach to holistically managing an organisation’s risks. Since its inception, scholars have been paying much attention to ERM implementation, with a particular focus on identifying its key determinants. Therefore, this study provides a comprehensive literature review on the determinants of ERM adoption. Research articles were distilled from Google Scholar and Scopus databases between 2003 and 2023. The existing literature highlights that firm size, institutional ownership, type of industry, profitability and the presence of a Big Four audit firm are key determinants of ERM adoption. Their significant positive effect validates this. Additionally, scholars underscore the importance of industrial diversification, earnings volatility, and internal audits due to their positive coefficient estimates. However, the impact of financial leverage, asset opacity, international diversification and stock price volatility remains inconclusive. The study suggests essential gaps, including new determinants, emerging contexts and methodological gaps for future research. Again, variables such as organisational culture and context, environment, social and governance and regulation could be considered to advance knowledge on the determinants of ERM adoption.

Determinants; Enterprise Risk Management; Firm-level; Literature Review.

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This study’s focus is on the analysis of South Africa’s finance-growth nexus. To contribute to the essential discussion that may prompt consideration of the financial sector reform agenda that fosters growth, this topic is being researched during this challenging economic period of slow real economic growth in South Africa, with 1.8% and 29.81% of GDP growth and unemployment rate, respectively in 2022. This study analyses the South African time series utilizing annual data from 1980 to 2018 to determine whether South Africa has a unique or distinctive finance-growth nexus. To capture the multidimensional phenomenon of financial systems, we employed the recently developed broad measure of financial development offered by the International Monetary Fund. We examined the long-run and short-run relationships between financial development and economic growth using the Autoregressive Distributed Lag (ARDL) technique which has many advantages over cointegration tests. Furthermore, this study reveals evidence of a mixed finance-growth casual association supporting the feedback hypothesis, sensitive to explanatory variables used as indicators of financial development, however, it does not find a relationship between financial development and economic growth in South Africa. Overall, we find that financial development and economic growth progress independently is particularly important for South African policymakers considering that the assertion by the companies that grow at levels that cannot be funded by internal funding is associated favourably with the development of the financial system and the securities markets. Therefore, we recommend that policymakers deploy strategies that shape the development of financial institutions and financial markets in a direction that affects firms’ access to external finance to directly contribute to economic growth. We recommend the formulation of policies that support both financial institutions-based development and financial markets-based financial development, such as policies that allow for increased retail participation in the financial market.

Financial Development, Economic Growth, South Africa(Adams, 2015)

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