THE ROLE OF RISK MANAGEMENT IN ICOFR AND ITS IMPLICATIONS IN IMPROVING SUSTAINABILITY

Abstract

This study aims to analyze the role of risk management in strengthening the effectiveness of Internal Control over Financial Reporting (ICoFR) and examine its implications for improving corporate sustainability. The increasing complexity of today's business environment requires organizations to move beyond profit-seeking and ensure long-term continuity through accountable governance. A Systematic Literature Review (SLR) approach was employed by synthesizing 10 selected articles from Scopus, Web of Science, and Google Scholar, published between 2021 and 2025. The synthesis reveals that structured risk management serves as the primary foundation for reliable ICoFR, supported by an ethical organizational culture and adequate technology adoption. Effective ICoFR subsequently contributes positively to corporate sustainability achievement. Furthermore, ICoFR performs a strategic mediating function within the causal chain connecting risk management and long-term sustainability objectives. These findings affirm that the three elements are not isolated entities but mutually reinforce one another in building robust, sustainability-oriented corporate governance.