Enhancing Enterprise Risk Management Through Emotional Intelligence: A Study of Risk Leadership in Indonesia

Abstract

This study examines the relationship between emotional intelligence and enterprise risk management maturity among risk leaders in Indonesia’s financial services sector, adopting a workplace accountability perspective to explain how leadership behavioural competencies support effective risk ownership, risk communication, and accountable risk decision-making. Drawing on survey data from 280 board-level executives holding the Qualified Risk Governance Professional credential, the study measures emotional intelligence using the Bar-On EQ-i and enterprise risk management maturity using the RIMS Risk Maturity Model. The findings reveal a strong and positive association between emotional intelligence and enterprise risk management maturity, with interpersonal competence and adaptability exhibiting the strongest associations with ERM maturity, while no significant differences are observed across job roles or organisational size. By empirically examining the association between leadership emotional capabilities and the institutionalisation of risk governance, the study contributes to global management and the literature on risk by extending enterprise risk management research beyond technical frameworks and compliance models, particularly within emerging market contexts. The results suggest that emotional intelligence may represent a transferable governance capability that is relevant to organisations operating in complex, uncertain, and globally interconnected environments. Practically, the study suggests that emotional intelligence development may represent a useful complement to leadership and risk capability programmes aimed at supporting risk culture, cross-functional engagement, and accountability.