ENTERPRISE RISK MANAGEMENT AND FINANCIAL PERFORMANCE: AN EMPIRICAL STUDY ON LISTED CEMENT FIRMS IN PAKISTAN

The overall economy of Pakistan has been growing rapidly in domestic as well as in the international market and successfully got the status of Emerging Market. However, due to the pressure of foreign market entrants, enterprises operating in Pakistan face tight inspection from the Security Exchange Commission of Pakistan (SECP) and State Bank of Pakistan (SBP). Therefore, this research is anticipated and discusses the association between performance and ERM adoption of the Cement Sector in Pakistan. The total cement firms consist of 22 listed cement firms in Pakistan and six listed firms were selected. This research-based on secondary data sourced from annual reports of selected cement firms covering a period of seven years from 2014 - 2020. The study concluded that there is a positive and significant association exist between risk management committee and firm performance in the cement sector in Pakistan. Furthermore, the members of the audit committee have a positive and significant impact on the financial performance of the cement firms