Business operation exposes to volitale and uncertain conditions in a dynamic economic environment. Failure to detect and identify upcoming significance events due to the global crisis has led to corporate collapse. Dynamic business environment, rapid changes in business transactions, technology advances, globalisation and unprecedented outbreaks have soeedily forced companies worldwide towards implementing effective strategies to embrace the risk. Risk management has become an essential part of the corporate practice to be a mechanism to communicate companies' strategies towards alleviating potential threat to the investors. The need for the risk and uncertainties being managed within business environment has raised by many scholars. Investors may view this as a positive strategy for companies to maximise shareholder value. Therefore, a good financial performance that leads to a maximised shareholder value could be attained when those inevitable risks are under controlled. Financial performance has been viewed as a tool to differentiate superior and significant information in interpreting the current financial position, thus expecting future performance. It is a vital measure to assess companies' financial health; it could also be used to measure operational effectiveness, company reputation, and organisational survival. Nonetheless, financial performance has evidenced useful as an indicator to evaluate the companies' reaction towards risk strategies.

Thus, this study explores and identifies the extent of risk management practices of public listed companies in Malaysia and Indonesia. Further, the disclosure of risk management practice would be assessed to examine its significant impact on the companies' financial performance. A content analysis of annual reports will be used to identify the sign of risk management practices from the disclosure of eight risk management dimensions in accordance with the COSO-ERM framework (2004). A ten-year prior to 2020 annual reports of random sampled companies is used to analyse risk management practice on corporate performance among Malaysia and Indonesia companies. Findings may provide further insights on the importance to manage inevitavle risks that may influence shareholder value in future.