The Effect of Enterprise Risk Management System on Risk Management Capability and Management Performance

The main purpose of this study is to identify the structural mechanisms through which Enterprise Risk Management System leads to risk management capabilities and managerial performance in the energy industry. In order to secure and sustain the competitive advantage of energy companies in this rapidly changing environment, it is very important to establish and strictly implement an ERM system to strengthen risk management capabilities, which will lead to the management performance of the company. The practical significance throughout this study come from the understanding of management environment of the companies that operate the power generation facilities of the energy industry and confirming the mechanism that the implementation of the ERM system is connected to risk management capability and management performance. Based on this, it suggests strategic direction for enhancing the competitiveness of the companies operating the power generation facilities.