The present study investigates the relationship between Enterprise Risk Management (ERM) and the financial performance of firms listed on the Tehran Stock Exchange over the period 2019–2023. The research adopts a descriptive–analytical and correlational–explanatory design. The statistical population consists of all companies listed on the Tehran Stock Exchange that had at least three consecutive years of accessible financial information. The sample includes 100 firms. ERM-related data were collected through a questionnaire using a five‑point Likert scale, and financial performance data were obtained from firms’ financial statements, including indicators such as return on assets (ROA), return on equity (ROE), liquidity ratios, and market value.Data analysis was conducted using descriptive statistics, Pearson correlation tests, and multiple linear regression. The correlation results indicated that all dimensions of ERM—including risk committee activity, transparency in risk disclosure, ERM system maturity, and the overall ERM index—exhibit a positive and significant relationship with firms’ financial performance. However, the multiple linear regression results showed that only the integrated overall ERM index has a positive and significant relationship with financial performance (β = 0.545, p < 0.001), while the other ERM dimensions, when examined independently, are not statistically significant. The findings suggest that having a comprehensive and integrated ERM system is more strongly associated with improved financial performance, whereas fragmented or unsystematic risk management practices, lacking structural integration, do not lead to meaningful performance enhancement. Accordingly, prioritizing the implementation and strengthening of integrated ERM frameworks can contribute to higher-quality financial decision‑making and improved corporate performance.