Assessing the role of Enterprise Risk Management (ERM) Systems in organizational sustainability

Abstract

This study critically examines the role of Enterprise Risk Management (ERM) systems in enhancing organizational sustainability by integrating environmental, social, and governance (ESG) objectives into risk management frameworks. Employing a systematic literature review methodology, the research synthesizes recent empirical and conceptual studies published between 2020 and 2025. The review focuses on core ERM principles, the interlinkages between ERM and sustainability, key components of effective ERM systems, and emerging innovations supporting sustainable practices. Content analysis was used to identify recurring themes, challenges, and best practices in ERM implementation for sustainability outcomes. Findings indicate that mature ERM frameworks significantly contribute to proactive identification and mitigation of sustainability risks, improved ESG performance, and enhanced corporate transparency and accountability. The integration of advanced technologies such as artificial intelligence and blockchain further strengthens real-time risk monitoring and sustainability reporting. Despite notable benefits, organizations face challenges including data limitations, governance fragmentation, and cultural resistance, which impede seamless ERM-sustainability integration. The study concludes with strategic recommendations for optimizing ERM to drive sustainable development, emphasizing governance alignment, cross-functional collaboration, technological adoption, and capacity building. These insights provide valuable guidance for managers, policymakers, and stakeholders seeking to foster resilient organizations capable of navigating complex sustainability challenges and creating long-term value.

Keywords: Enterprise Risk Management, Organizational Sustainability, ESG Integration, Risk Governance.