Sustainability corporate governance: The role of audit committees on the board, gender diversity, and risk management

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Abstract

Enterprise risk management (ERM) plays a vital role for companies (Ghazieh & Chebana, 2021). This study examines the impact of the board of commissioners’ composition and the presence of gender diversity on ERM. Additionally, this study employed the audit committee as an intervening variable. This study uses financial companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022. The total number of analysis units is 115. This study applies descriptive statistics and path analysis utilising WarpPLS 7.0. The findings reveal that the board of commissioners, gender diversity, and the presence of an audit committee all exert a positive influence on ERM. Furthermore, the audit committee plays a mediating role in the relationship between board size and ERM. However, neither the board of commissioners nor gender diversity appears to significantly impact the audit committee itself. The board of commissioners affects the audit committee. However, gender diversity does not affect the audit committee. To the best of the researcher’s knowledge, this is the first study that adopts a unique approach by analyzing the audit committee’s role as an intermediary in the relationship between board composition, gender diversity, and ERM — a topic that remains underexplored. This research supports firms in strengthening the audit committee’s role in overseeing the implementation of ERM disclosure.

Keywords: Board of Commissioners, Gender Diversity, Enterprise Risk Management, Audit Committee

Authors’ individual contribution: Conceptualization — R.H. and D.S.; Methodology — Y.N.F. and I.F.S.W.; Software — A.F.; Validation — D.S. and R.R.; Formal Analysis — T.S. and A.F.; Investigation — R.H. and T.S.; Resources — R.R. and I.N.K.; Writing — Original Draft — R.H. and D.S.; Writing — Review & Editing — D.S. and I.F.S.W.; Supervision — R.H.; Project Administration — I.N.K. and Y.N.F.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G32, G34, M19, M41

Received: 04.06.2025
Revised: 05.12.2025; 26.01.2026
Accepted: 20.02.2026
Published online: 24.02.2026

How to cite this paper: Hidayah, R., Suryandari, D., Suryarini, T., Rahayu, R., Kayati, I. N., Fadhila, Y. N., Wahyuningrum, I. F. S., & Fernando, A. (2026). Sustainability corporate governance: The role of audit committees on the board, gender diversity, and risk management. Corporate Governance and Sustainability Review, 10(2), 8–17. https://doi.org/10.22495/cgsrv10i2p1