TITLE:
Integrated Enterprise Risk Management: From Process to Best Practice
AUTHORS:
Kathryn Cormican
KEYWORDS:
Enterprise Risk Management, Process, Tools, Best Practice Factors, Audit
JOURNAL NAME:
Modern Economy,
Vol.5 No.4,
April
18,
2014
ABSTRACT: There are
strong motivating factors for increased awareness and action with regard to
Enterprise Risk Management (ERM). Effective ERM policies and practices are
lauded to increase stakeholder confidence, competitive advantage and ultimately
an organization’s long-term viability. However previous studies suggest that
the concept is poorly understood in practice and organizations are failing to
implement the intended benefits. Furthermore, insufficient research has been
conducted in this area and there are few comprehensive or practical guides
available to managers in his domain. This paper attempts to address this
deficit and expand the discussion on integrated enterprise risk management
practices. The study presents findings from a qualitative study where critical
success factors for effective enterprise risk management are identified and
categorized. From this analysis an audit tool to assess ERM best practices is
presented. The tool acts as an independent validation resource to ensure that
an organization’s efforts are proactive and effective against current and
emerging threats. The contributions of this research are many. First it
enhances knowledge and skills in a neglected but essential multi-disciplinary
area. Second the research is grounded in best practice and so adds to academic
debate by validating and contradicting previous studies. Third the development
of new and innovative tools in enterprise risk management adds bridges the gap
from theory to practice.