Managing and mitigating risks have become more critical than ever for the management of enterprises nowadays. The management of the enterprises must have a helicopter view in perceiving, analyzing, and assessing risks as it must be regarded from the entire enterprise's perspective (Jie Liu, 2012) as the risk is undoubtedly an inherent part of the corporate strategy of doing business (Dickinson, 2001). Furthermore, currently managing risk is not just doing risk assessment including how to mitigate risk but with enterprise risk management, the goal is to create, protect and enhance shareholder value (Barton et al., 2002). This paper investigates whether the implementation of ERM influences firm performance. This paper also aims to validate which of the following variables: Internal Audit, IT Capability, and CRO Role, affecting ERM implementation on firm performance. Thorough research has been done on listed and non-listed Indonesian State-Owned-Enterprises (SOEs) as the unit analysis. The result showed that all three variables, namely Internal Audit, IT Capability and CRO Role, have positively influenced ERM implementation against firm performance. The findings will contribute new insights for Indonesian SOEs to make use of the tested variables in ERM implementation to improve firm performance.
Key words: enterprise risk management, firm performance, internal audit, CRO role, IT capability, listed status
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