Enterprise Risk Management: A Literature Review and Agenda for Future Research

Abstract

The Enterprise Risk Management (ERM) process has heterogeneously developed across the world, although it represents a leading paradigm, supporting organizations to identify, evaluate, and manage risks at the enterprise level. Academics have studied the process, but there is no complete picture of the determinants and implications of such an integrated risk management process. Therefore, we present a systematic empirical literature review on ERM, based on a research protocol. The review highlights that the ERM literature can be divided into four general lines of research: the ERM adoption, the determinants of the ERM implementation, the effects of ERM adoption, and other aspects. In contrast to the richness of studies devoted to ERM engagement in small and medium-sized enterprises (SMEs), studies exploring ERM adoption in banks or insurance are relatively few. The literature review has revealed that the most frequently investigated effect of ERM is on firm performance. Little effort has been dedicated to the analysis of the effectiveness of ERM by its components and to institutional, individual, and organizational factors that affect ERM adoption. The study can serve as a starting point for scholars to explore research gaps related to ERM, while the practitioners can rely on the presented findings to identify the effects of the ERM implementation.

Flexibility and Resilience in Corporate Decision Making: A New Sustainability-Based Risk Management System in Uncertain Times

“…For this reason, it is necessary to put in place a risk management plan, which is a set of activities, methodologies and coordinated resources focused on identifying possible internal and external risks that may affect the company, in order to take the necessary measures and ensure its safety and integrity (Anderson 2013 ). This process of planning, organizing, managing and controlling a company's activities to minimize the effects of risk on capital and profits is often called Enterprise Risk Management (ERM), (Anton et al 2020 ). Many scholars and practitioners have different views on risk classification systems and what types of risk to include or not in the ERM.…”

Decentralized Enterprise Risk Management Issues under Rapidly Changing Environments

“…. This holistic approach of the ERM is widely discussed in the scientific literature, several reviews present this topic in detail CCOSO (2004), Gates (2006), Gordon et al (2009), Ching and Colombo (2014), Bromiley et al (2015), Fraser et al (2015), Wu et al (2015), Lackovic (2017), and more recently Anton and Nucu (2020), Kerraous (2020). The holistic approach to managing risk can enable organizations to deal with risks and opportunities more effectively, enhancing the organization's capability to create and preserve value for stakeholders (CCOSO 2004).…”

“…A recent review based on a large sample from 2008-2019 literature indexed on the ISI Web of Science has revealed that the most frequently investigated topic of ERM is firm performance. (Anton and Nucu 2020).…”

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

“…Many studies conducted by previous researchers were related to ERM, such as (Ahmed and Manab, 2016); (Mohd-Sanusi et al, 2017); (Waseem-Ul-Hameed et al, 2017); (Lundqvist and Vilhelmsson, 2018); (Mahmod et al, 2018); (Lechner & Gatzert, 2018); (Bohnert et al, 2019); and (Anton & Nucu, 2020), highlight the factors in ERM adoption and implementation which include personnel perceptions of risk management and the need for a risk awareness culture at all organizational levels before adopting ERM. Oliveira et al (2019), identified ten critical factors that can influence the successful implementation of ERM in an organization.…”

“…Innovative industrial risks arise due to uncoordinated and balanced innovative projects, which are accompanied by the emergence of various stochastic effects that have an impact on innovative processes of complex economic systems (Ponikarova & kadeeva, 2020). Implementation ERM is most important for various sectors, banks, insurance and non-financial companies, especially SMEs (Anton & Nucu, 2020). Other studies on the relationship between risk management and balanced scorecard in service banks (Elkhouly et al, 2015); and (Ratri & Pangeran, 2020).…”