The motivation behind the study is continuous fluctuations in energy prices in Pakistan, so this study aims to investigate the role of a twin deficit, urbanization, climate change, energy production from oil and gas, and the exchange rate in energy inflation. This study utilized oil prices and electricity prices to capture energy inflation using time series data from 1972 to 2021, from World Development Indicators (WDI) and the Census of Electricity Establishment (CEE). This study utilized the vector auto-regressive (VAR) model to investigate the short-run and long-run estimates. This study found that the twin deficit and the exchange rate have a significant and positive association with energy inflation. However, the size impact of the twin deficit is greater on oil prices as compared to electricity prices. Furthermore, urbanization, climate change, and energy production from oil and gas have a positive and significant long-run association with electricity prices. Moreover, the results of the variance decomposition test indicate that the relative contribution of the budget deficit in electricity prices (Model 1) is greater than other modeled variables, while the relative contribution of the budget deficit and climate change is greater in oil prices (Model 2), as compared to other exogenous variables. This study helps policymakers to devise policies to control energy inflation, which affects the well-being of society.

The Malaysian listed companies are still struggling to maintain their enterprise risk management (ERM) system efficiently due to improper implementation problems of risk management practices. Therefore, the prime objective of this study is to reveal the audit effectiveness in mitigation of risk management implementation (RMI) problem and to examine the effect on financial performance. To achieve this objective, three hundred (300) questionnaires were distributed among the managerial employees of Malaysia listed firms by using simple random sampling. Data were analyzed by using SmartPLS 3. It is found that external audit effectiveness (EAE) and internal audit effectiveness (IAE) has a significant positive relationship with an ERM system. However, top management stress has a significant negative relationship with RMI. Additionally, ERM system has positive effect on financial performance of companies.It is also found that level of RMI playing a mediating role. Thus, this study is contributed in the body of knowledge by highlighting the vital factors to mitigate the crucial problem of RMI, particularly in Malaysian firms. Hence, the current study is quite beneficial for practitioners to implement ERM system effectively. Keywords: Enterprise risk management, internal audit, external audit, top management stress, implementation.