Enterprise risk management: history and a design science proposal

Abstract

Purpose This paper aims to investigate the evolution of enterprise risk management (ERM) out of fragmented disciplinary perspectives to provide a foundation for promoting interdisciplinary research and proposes a design science approach for more effective ERM implementation in organizations. Design/methodology/approach This conceptual paper synthesizes ERM research and practice from multiple disciplines. Findings Corporate risk management concepts were born in academic finance and developed further in the finance subset known as risk management and insurance. With the advent of ERM, efforts must broaden beyond applying statistical models to quantifiable risks. Other disciplines have expanded ERM research by embracing techniques to investigate risk management practices to produce knowledge that integrates practice and theory. ERM is promoted as integrated risk management, yet silos still remain in both practice and research. Originality/value This study provides a foundation and a proposal for moving ERM past academic and organizational silos, which is necessary to achieve the ERM philosophy and increase organizational resilience. Understanding the evolution and fragmented nature of ERM research and practice provides a foundation for interdisciplinary cooperation necessary to achieve the holistic ERM philosophy. A next frontier is effective ERM implementation. This paper argues for an organizational design science approach for mitigating the resistance to change that confounds effective implementation of ERM in organizations facing an increasingly uncertain environment and outlines future research for applying the approach to implementing the ISO 31000 risk management process.

Tourism Family-Business Owners’ Risk Perception: Its Impact on Destination Development

“…Within the past decade, tourism research has addressed sustainability as a major topic for tourism planning and development [13,14]. As mentioned previously, to remain sustainable, a tourism destination faces a number of risks that must be managed to remain competitive in the long run [15,16]. One key factor in a sustainable development approach is including such stakeholders as the present and future host community [14], since various stakeholders contribute to a region's tourism development [17].…”

Integrating a Proactive Technique Into a Holistic Cyber Risk Management Approach

“…Risk managers need to understand cyber risks and bring cybersecurity under the holistic enterprise risk management (ERM) umbrella (McShane, 2018). Collaboration across disciplines is essential for future cyber risk research.…”

Influence of media exposure and Corporate Social Responsibility compliance on customer perception: The moderating role of Firm's reputation risk

“…Reputation risk exists when a firm faces some threat to its reputation from the society in general (Ajina, Japutra, Nguyen, Syed Alwi, & Al-Hajla, 2019). The concept of reputation risk is an innate negative concept that can give rise to questions on the image of an organization (Heidinger & Gatzert, 2018;McShane, 2018). In essence, reputation risk is synonymous to bad reputation with a difference that reputation risk is a potential threat that can result into bad image for the firm (Fournier & Srinivasan, 2018;Hogarth, Hutchinson, & Scaife, 2018;Iwata, 2018;Ma & Wong, 2018;Mitic, 2018;Pereira, Silva, & Pereira, 2018;Tannous & Yoon, 2018).…”