This chapter discusses the evolution of the literature on enterprise risk management (ERM). We identify and summarize three prominent streams of ERM literature. Early scholars focused on the determinants of ERM usage and found that ERM is motivated by factors consistent with value maximization as well as pressure from regulators and other external stakeholders. The next stream of research focused on the value relevance of ERM—with the majority of studies finding that firms engaging in ERM, and those with higher quality ERM programs, tend to have greater firm value. The most recent group of studies focuses on the specific channels through which ERM enhances value and finds that ERM reduces the marginal cost of risk reduction, moderates the negative effect of business diversification, reduces the cost of capital, and improves efficiency. Our discussion concludes with a call for additional research on each of these topics using refined measures, methods, and samples that are larger and more representative of the aggregate economy.