Risk Mitigation Using Integration Enterprise Risk Management and Balanced Scorecard model : A Case Study In A Consulting Services Company in Indonesia

Abstract

Risk is the uncertainty of events that can hurt organizational goals. The risks that exist in the company need to be managed or controlled to reduce risk pressure on the goals the company wants to achieve. ERM is an integrated or holistic strategic risk management that manage risk more comprehensively. Meanwhile, the Balanced scorecard is a tool used to help companies measure performance based on financial and nonfinancial perspectives. The purpose of this study is to determine the extent to which companies can apply ERM based on the balanced scorecard perspective and how the integration of ERM and balanced scorecard can help managerial decisions. This research conducted at a consulting service company using semi-quantitative methods. The results showed 36 events identification. Risk management is carried out based on the level and amount of risk that has been evaluated and made in a risk priority map. Handling risk three strategies, apply namely accept, share and reduce under capabilities, and resources the company has in managing risk. Implementation of ERM and Balanced Scorecard companies can reduce existing risks, and assist stakeholders in making decisions related to risk management.

Integration of Sustainability in Risk Management and Operational Excellence through the VIKOR Method Considering Comparisons between Multi-Criteria Decision-Making Methods

“…Additionally, the implementation of a performance measurement system, such as the Balanced Scorecard (BSC), helps organizations to control various activities. It fulfils the objective of providing a strategic perspective and monitors the company's operations by aligning them with its vision and mission, encompassing both financial and non-financial metrics [46]. These elements combined constitute a holistic and dynamic approach to managing risks and ensuring continuous improvement in all areas of an organization.…”