This study aims to examine the factors of enterprise risk management of financial firms in Pakistan. For this study, financial firms from Pakistan have been selected. Annual data is taken, ranging from 2013-2021. This study uses panel data regression analysis approach with other estimation techniques. For the sample of this study, 15 financial firms listed on the stock exchange have been taken. Enterprise risk management as a dependent variable was selected as the Tobin q measure, while three independent variables were selected for different companies. A Hausman test suggested that the random-effect model is suitable because it also has time-varying and time-constant variables. The result shows the appropriate facts regarding the hypothesis of variables like capital opacity, the stock price of volatility, and return on equity. With the help of this study, an effort has been made to explore the factors affecting enterprise risk management. The findings of this study are beneficial for a policymaker, manager, economic agents, shareholders, and other stakeholders to control for risk factors. However, variables include capital opacity, Stock price volatility (SPV), and the positive and statistically significant effects on risk.

Keywords: Enterprises, Risk management, Capital opacity, Return on equity, Stock price volatility