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Abstract
Enterprise risk management (ERM), which came along with the change in the
understanding of risk management in companies, refers to evaluation of all the risks
as a whole and managing them in line with the targets of the company. This study
aims at determining the ERM application levels of the companies included in the
Istanbul Stock Exchange and the factors that affect these applications. Existence of
ERM in the companies was related with having senior manager in charge of risk
management. In order to explain ERM applications with profitability, leverage and
company size a Logistic Regression model was established. As a result of the analysis
it was determined that about half of the financial sector companies within the ISE
employed a chief risk officer (CRO), which means a culture of risk management has
been founded within these companies. Moreover, it was determined that profitability
of the companies do not have any significance in ERM applications while the most
important factors that affect the applications were found to be leverage and company
size.