aFaculty of Economic and Management, National University of Malaysia, Bangi 43600, Malaysia
*Corresponding author, e-mail:
p96461@siswa.ukm.edu.my
Abstract
The study examines the integration of Management Control Systems (MCS) and Enterprise Risk Management (ERM) and its effect on firm performance in Indonesian FinTech companies. The study focuses on the importance of a comprehensive risk management approach that integrates MCS’s diagnostic and interactive control systems with the five components of ERM: organizational environment, risk awareness, strategic integration, risk assessment, and reporting. Data were collected through a survey of Indonesian FinTech firms using a quantitative research methodology. The study shows that combining MCS and ERM improves risk management and positively impacts organizational performance. This study makes a significant contribution to both theoretical understanding and practical application by presenting a comprehensive framework that combines management control systems (MCS) and enterprise risk management (ERM). The insights provided are particularly valuable for FinTech companies aiming to enhance their risk management practices and overall performance.
Keywords
management control system, enterprise risk management, f firm performance, Fintech