Impact of Enterprise Risk Management Implementation on Fraud Control in Small and Medium Enterprises

Abstract

Technology is developing rapidly in this technological era including businesses. Therefore, the whole population must adapt to the technological change. Adapting to new technology will give a lot of competitive advantages aspect in every business including the small and medium enterprise businesses as it will help the businesses to be more sustainable in the long run. As it is known that most of the SMEs have an essential role in the country's economy growth, especially in developing countries. Therefore, an adaptation to technology is crucial for enterprises to implement. Unfortunately, most of the SMEs have not implemented a risk management system yet which it could create a threat to the sustainability of their enterprises. Risk management itself is important to have for enterprises as it can develop a strategy that is needed to compete with competitor, minimize and control risks from internal and external factor such as fraud, and to make the enterprise itself becoming more sustainable in the long run. The purpose of this study aim is to observe the impact on implementing enterprise risk management (ERM) and determine whether the implementation of risk management could control and minimize fraudulent activity within the enterprises and keeps the company sustainable in the long run.