IMPACT OF ERM ON SUSTAINABILITY AND FINANCIAL PERFORMANCE OF ENTERPRISES IN THE GULF COOPERATION COUNCIL: CASE STUDY OF OMAN

This study argues that enterprise risk management (ERM) practices have a significant impact on enterprise sustainability and performance. This study uses 150 observations from 104 enterprises in Oman. The results show that the enterprises which measure their business risk and then adopt different strategies to manage their risk can visualize their future position and can have better plans for improving their performance. Numerous studies examined the impact of enterprise risk management practices on financial performance; however, few studies have focused on the sustainability of the enterprises. Therefore, our study will contribute to the literature by examining the impact of enterprise risk management practices on enterprise sustainability. This study was conducted in Oman; which is a member country of the Gulf Cooperation Council (GCC). The GCC countries are different than the other western countries because of their economic conditions, cultural values, and market situations. This research study has provided many implications for the enterprises of Oman.