Abstract
Risk Management (RM) is rapidly evolving; its practitioners are increasingly shifting focus from pure operational or financial risks to a broader Enterprise Risk Management (ERM). ERM involves a set of processes and methods used to manage risks that are not just associated with accidental losses but also associated with financial, strategic, technological and other business areas. This article highlights different factors that affect the adoption of ERM which include people's perception of RM and the necessity for a risk-aware culture at all levels within organisations before adopting the ERM-based approach. The article also addresses a few popular ERM frameworks that help organisations to understand a complete picture of ERM activities and its functional areas. The work presented in this article is taken from an on-going project that is being undertaken to develop a practical tool for providing better analysis of risk data and improved knowledge management.
Additional information
Notes on contributors
Shahzeb Ali Malik
Shahzeb Ali Malik is currently leading a KTP project to develop a web-based decision support tool and an accompanying education programme which helps to improve the reliability of management information for risk management practitioners. He received his PhD in Information Systems from Manchester Business School, The University of Manchester, UK in 2011. His research interests include enterprise risk management (ERM), risk perception, risk culture, and customer relationship management (CRM).
Barry Holt
Barry Holt is Director of Policy & Research, IIRSM has been involved in risk management, especially health and safety for over 35 years, mainly as a consultant providing advice to organisations including major multinationals, SMEs, NGOs and government agencies. He has worked in many parts of the world, including the Middle East, Asia Pacific and the USA. He has a degree in metallurgy from Imperial College, London, and he is currently working at IIRSM as Director of Policy & Research.