STRENGTHENING FINANCIAL SUSTAINABILITY THROUGH INTEGRATED BCMERM FRAMEWORKS AMIDST MARKET VOLATILITY

Abstract

Recurrent market disruptions impose compounding structural pressures on corporate financial sustainability, yet Business Continuity Management (BCM) and Enterprise Risk Management (ERM) have predominantly evolved as separate governance disciplines, leaving their synergistic potential underexplored. This study investigates how the deliberate integration of BCM and ERM elevates financial sustainability under market volatility conditions and offers an evidence-anchored conceptual model to operationalise such integration. A Systematic Literature Review (SLR) adhering to the PRISMA 2020 protocol was conducted across six academic databases, producing a final corpus of 42 peer reviewed articles published between 2015 and 2024. Thematic synthesis was employed, with dynamic capabilities theory as the overarching analytical lens. Organisations with formally integrated BCM-ERM governance recorded a 27.4% weighted-average reduction in earnings volatility against 12.1% for ERM-only and 8.3% for BCM-only peers and limited current ratio deterioration to 14.2% versus 31.7% for siloed counterparts during major disruption events. A unified Chief Risk Officer (CRO) structure amplified integration synergies 2.3-fold. This study introduces the Integrated BCM-ERM Financial Sustainability Framework (IBEFS), a four-tier model reconceptualising financial sustainability as an enduring governance constraint rather than a terminal outcome variable. Findings carry direct policy relevance for Bank Indonesia, OJK, and risk practitioners serving systemically important financial institutions and SMEs across emerging-market economies.