A Enterprise Risk Taking: A Systematic Literature Review Based on Francis and Holloway's Method

Abstract

Enterprise Risk Taking (ERT) is a critical aspect of corporate strategy that influences organizational growth, innovation and competitiveness. This study systematically examines the factors influencing Enterprise Risk Taking (ERT) using Francis and Holloway's Literature Review methodology. This paper synthesizes findings from recent literature on the internal and external determinants of ERT. The review categorizes these factors to elucidate the complex interactions impacting corporate risk-taking behaviors. Results indicate that a firm’s risk appetite is significantly shaped by both structural and environmental variables, with internal governance and managerial perspectives playing crucial roles. Additionally, external market conditions and regulatory constraints are found to moderate ERT in response to economic fluctuations and industry volatility. This review contributes to the literature on ERT by offering insights for policymakers and corporate leaders to develop effective risk management strategies tailored to their specific contexts, adaptable risk management strategies tailored to dynamic business environments.