The Moderating Effect of Human Capital on the Relationship between Enterprise Risk Management and Organization Performance

In today’s challenging global economy, risk management is encountering a significant transformation. Organizations are switching their method to enterprise-wide from the traditional compartmentalized approach. Enterprise (ERM), which aims at increasing sustainability of an organization and achieving competitive advantage, gaining attention fast becoming essential concern in all industries. Despite importance knowledge embedded people current knowledge-based there remains paucity evidence concerning how human capital could influence organization’s ERM. Based on Resource-based view (RBV) theory, this study analyses correlation between ERM, capital, performance Malaysian public listed companies (PLCs). For study, 500 questionnaires had been distributed, 116 responses were obtained. Structural Equation Modeling (SEM) used assess fitness conceptual model. This found relationship ERM organizational performance, moderated by capital. contributes literature providing empirical performance. Findings also provide guidelines for managers, policymakers, regulatory bodies evaluate practices PLCs.