IMPACT OF ENTERPRISE RISK MANAGEMENT AND BUDGETING FUNCTIONS ON ORGANIZATIONAL RESILIENCE AND PERFORMANCE

Abstract

This study examines the role of management accounting and control practices – specifically enterprise risk management and budgeting function – in fostering organizational resilience, thereby enhancing organizational performance. A quantitative approach was employed, using survey data from 116 Vietnamese enterprises and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS4. The findings reveal that both risk management and budgeting function positively influence organizational resilience, while risk management and resilience positively affect organizational performance. However, budgeting does not show a statistically significant direct impact on performance, suggesting the need for more flexible and interactive budgeting practices.