The application of enterprise risk management in global expansion strategy: A comparative study of Brookfield asset management and Evergrande group

Faculty of Arts and Social Sciences, University of Sydney, Camperdown NSW 2006, Australia

^* Corresponding author: cwan0500@uni.sydney.edu.au

Abstract

This paper explores the key role of ERM in the global expansion strategy through a comparative case study of Brookfield Asset Management and China Evergrande Group. Based on the COSO framework and dynamic capability theory, this research analyzes the practical effects of ERM from dimensions such as governance structure, strategic adaptability, and expansion results. The results show that Brookfield has deeply integrated its mature ERM mechanism into its real estate investment strategy, achieving stable international expansion and excellent ESG performance. However, due to the lack of institutionalized risk management, Evergrande operated with high leverage and failed governance, eventually falling into a financial crisis. The research reveals significant differences between the two enterprises in terms of risk governance structure, identification mechanism, strategic fit and regulatory compliance, highlighting the core value of ERM as a dynamic capability in responding to global uncertainties. This paper provides case support for theoretical research on the strategic value of ERM and offers practical suggestions to enterprise managers and regulatory authorities. The research’s limitations lie in the limited sample size and the lack of quantitative analysis. Subsequent studies can expand to industries and samples and establish a quantitative ERM evaluation system.