This study examines the relationship between Enterprise Risk Management (ERM) maturity and firm performance, with an emphasis on how organizational complexity, industry type, and board engagement may moderate this relationship. Although prior research has broadly acknowledged ERM’s role in mitigating risks, few studies explore how ERM maturity contributes directly to firm performance outcomes. Additionally, the literature often treats ERM as a static process rather than a dynamic capability that evolves and adapts within different organizational structures and industry-specific environments. This gap highlights an important opportunity to examine ERM maturity as a strategic asset that enhances decision-making, optimizes resource allocation, and drives sustainable competitive advantage.
Drawing on the Resource-Based View (RBV), Agency Theory, and Contingency Theory, this study addresses these gaps through a quantitative survey of risk professionals from 111 publicly listed companies. By focusing on how ERM maturity impacts firm performance and controlling for variables such as firm size, market volatility, and leverage, this research seeks to provide nuanced insights into ERM's role as a driver of resilience and adaptability. The findings will contribute to the literature by offering a more comprehensive view of ERM maturity’s influence across diverse organizational and industry contexts, ultimately providing practical guidance for companies aiming to refine their risk management capabilities in pursuit of competitive advantage.