Association between firm size and enterprise risk management level – literature review

Abstract

The paper aims to investigate if firm size plays a role as a driver for the ERM method and as an ERM determinant. A comprehensive literature review (conducted 2010–2021) and primary data (SMEs in Czech Republic, research conducted in 2021) were applied. Latent class analysis and contingency tables were employed. The results show that firm size predicts the adequate ERM method and has positive effects on the ERM level. The contribution is in identifying significant differences between micro- and medium-sized enterprises with respect to the ERM level. At the conclusion, the author discusses other possible ERM drivers and ERM determinants.