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Abstract
Enterprise Risk Management (ERM) has been discussed in practice and in academic research for several years. Research has primarily focused on (a) understanding the approach and processes that define the frameworks for creating and implementing an ERM program and (b) the use of ERM to identify and mitigate daily business risks such as cyber risk and black swan events that have changed the way the world conducts business. Many organizations have struggled with measuring the value derived from their investments in ERM programs. Investments have evolved to include the use of ERM software, paired with other advanced information technologies such as data analytics to improve an organization’s ability to proactively identify and assess the impact of risk. There is limited research on evaluating the return on investment based on organizational performance. This study uses a linear regression model to assess the association of various advanced information technologies in ERM on organizational performance. The model provides the context for consideration of technology on performance as defined by gross profit; this concept forms the basis for the construct and analysis approach of this research. The study results demonstrate that data analytics, the Internet of Things (IoT) and ERM frequency have a positive association with organizational performance overall. This effect was found to be more pronounced in the information technology industry, but not significant in manufacturing and financial services.
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