Investigation of risk management in an internal control system, institutional companies

Global economic crises, accounting frauds and scandals, especially in the US, have caused investors to lose confidence in the market. These developments have shown that the traditional risk management approach is insufficient to meet the needs and needs of the company. In the light of these developments, studies on Enterprise Risk Management, which is a new approach, have started. Enterprise risk management; It is the risk management process that aims to manage all risks that companies may face, that deals with the opportunities and threats of risks together, and also advocates that the board, managers and all other employees should take part in this process. Corporate risk management is expected to provide competitive advantage and increase firm value. This study aimed to determine whether corporate risk management has an impact on firm performance. In this study, 5 year data and 895 business / year data of 179 enterprises in Borsa Istanbul (BIST) covering the years of 2017 2013 were used. The effects of corporate risk management on firm performance were analyzed with Panel Data Technique. The independent variables of the study were determined among the factors affecting the relationship between corporate risk management and firm performance, which are frequently used in the related literature. These factors are the risk management committee, finance / accounting experts, corporate risk manager, audit committee size and board size. In the study, the size of sales was used as the control variable. The return on assets-ROA, which is the financial performance indicator, was selected as the dependent variable. The size of the audit committee has a negative effect on the viii performance of the firm. Therefore, a change in corporate risk manager and board size variables will affect asset profitability in the same direction, whereas change in audit committee size variable will adversely affect. Keywords: Risk, Enterprise Risk Management, Company Performance