Governance, Enterprise Risk Management, and Public Higher Education Performance: A Systematic Literature Review

The significance of governance in the Enterprise Risk Management (ERM) strategy in enhancing organizational performance is undeniable. Recognizing the significance of this matter, intense debates on governance, enterprise risk management (ERM), and performance are now being expanded to include higher education institutions (HEIs). Numerous studies have been conducted to elucidate the challenges associated with the issue. The study addresses the lack of comprehensive understanding regarding governance structures’ impact on ERM practices and HEIs’ performance outcomes. Hence, this study aims to investigate the state-of-the-art issues outlined in research about governance, enterprise risk management (ERM), and the performance of higher education institutions (HEIs), particularly those that are publicly funded. This study aims to expand its focus beyond Higher Education Institutions (HEIs) and include the public sector. It will specifically examine the overall governance problem and the identified Enterprise Risk Management (ERM) issues in the public sector. The review of the study was based on the reporting standards for the systematic literature review (SLR). This study selected articles using two leading databases, namely, Scopus and Web of Science (WoS). By identifying 22 out of 803 studies were published in both databases from 2014 to 2024, the investigation resulted in the identification of three important themes: (i) governance and HEIs performance, (ii) governance and integrity in the public sector, and (iii) ERM practices at non-financial organizations. It highlights obstacles such as reluctance to adapt and limitations in available resources. The advantages encompass enhanced strategic decision-making, efficient allocation of resources, and a robust framework for risk management. The findings offer theoretical insights into the importance of cross-sectoral governance and risk management principles for HEIs’ performance enhancement. Additionally, highlighting the capacity to tailor governance and risk management frameworks in HEIs through the adaptation of non-financial and public sector approaches can enhance performance.