Literature review on the impact of risk management committees on the effectiveness of enterprise risk management

The establishment of the Risk Management Committee aims to enhance the board's ability to monitor risks, but there is no consensus on its impact on the effectiveness of enterprise risk management. This article provides a literature review from two aspects: whether the risk management committee will improve the effectiveness of enterprise risk management, and which features will affect the effectiveness of enterprise risk management. Research has found that the structural characteristics of risk management committees, including size, independence, professional knowledge and skills, meeting frequency, and proportion of female members, have a significant impact on the effectiveness of enterprise risk management. However, the relationship between these characteristics and corporate performance is not consistent and may be influenced by moderating variables such as external environmental uncertainty, industry competition intensity, and corporate complexity. This article suggests that companies should establish a reasonable risk management committee based on their own characteristics and consider incorporating digital skills into the professional knowledge of committee members. Future research should consider the impact of specific situational factors on the relationship between risk management committees and the effectiveness of enterprise risk management.