Determinants of existence of enterprise risk management in businesses

The enterprise risk management, which is widely applied in recent years, comes to the fore as a contemporary risk management approach preferred by businesses that want to grow more and get involved in international markets. In the international arena, the number of studies regarding the determinants of the presence of enterprise risk management in businesses are limited. However, it is observed that number of studies on this subject is quite small in Turkey. It can be said that enterprise risk management in Turkey began to increase after the adoption of the new Turkish Commercial Code. This study aims to identify the factors affecting the presence of enterprise risk management in Turkey by studying enterprises of the real sector in the periods of 2013 and 2014. As a result of the numerical modeling, it was concluded that the big four audit firms, profitability, company size, and the rate of financial leverage are the determinants of the presence of enterprise risk management.