Enterprise risk management: definitions and understandings
Keywords:risk, risk management, stages, components, elements, process, purpose of integrated risk management
Definition of risk management by theorists and practitioners of risk management is systematized based on the research work of scientists, government instructions, data, Internet sites of Insurance and Risk Management Society of US and Canada, Swiss Re International Insurance Group, The Committee of Sponsoring Organizations of the Treadway Commission – COSO, Directive 2009/138/EC Solvency II, documents of the Basel Committee on banking supervision Basel.
Results of the study indicate that both practitioners and theorists of risk management suppose consistent identification of risks, their evaluation, selection and use of methods of risk management according to priority threats as its mandatory elements or stages. A key feature of the integrated enterprise risk management is the responsibility of management at all levels of decision-making with the defining of risk appetite. Management system is viewed based on functional and system approaches within the subject-object interaction.
Scientific approaches mostly concentrated on managing potential threats. The purpose of the integrated risk management as well as theorists and practitioners consider bankruptcy prevention and increasing the value of enterprise. Risk management practitioners distinguish strategic and integrated risk management. This integrated risk management is a structured process of risk management portfolio with the embodiment necessary components such as: organizational support, information-analytical systems, stress testing and methodological support. The key characteristic of strategic risk management is that it is the responsibility of the directors of the capacity to implement the plans and strategy of the enterprise.
- Blank, I. A. (2008). Entsiklopediia finansovogo menedzhera. Vol. 4. Upravlenie finansovoi stabilisatsiei predpriiatiia. Ed. 2. Moscow: Omega-L, 512.
- Srikanth, S. N., Venkataraman, R.; In: Bichou, K., Bell, M., Evans, A. (2007, July). Strategic Risk Management in Ports. Risk Management in Port Operations, Logistics and Supply Chain Security. Chapter 19, 335–345. Available: http://hauers.com/StrategicRiskMgt%20in%20Ports.pdf. doi:10.4324/9781315850504
- Baldzhy, M. D., Karpov, V. A., Kovalov, A. I., Kostusiev, O. O., Kotova, I. M., Smentyna, N. V. (2013). Obgruntuvannia hospodarskykh rishen ta otsinka ryzykiv. Odesa: ONEU, 670.
- Dorfman, M. S. (2004). Introduction to Risk Management and Insurance. Ed. 8. Pearson Prentice Hall, 608.
- Conrow, E. H., Pohlmann, L. D. (2004, January). Effective Risk Management: Some Keys to Success, Second Edition. INSIGHT, Vol. 6, № 2, 44–44. doi:10.1002/inst.20046244
- Barton, T. L., Shenkir, W. G., Walker, P. L. (2003). Making Enterprise Risk Management Pay Off: How Leading Companies Implement Risk Management. Translation from English. Moscow: Williams, 208.
- Conrow, E. H. (2003). Effective Risk Management: Some Keys to Success. Ed. 2. American Institute of Aeronautics and Astronautics, Inc. ARIAA, 526.
- In: Lobanov, A. A., Chugunov, A. V. (2003). Entsiklopediia finansovogo risk-menedzhmenta. Moscow: Al'pina Pablishcher, 786.
- Buianov, V. P. (2003). Riskologiia (upravlenie riskami). Ed. 2. Moscow: Eksamen, 384.
- Utkin, E. A., Frolov, D. A. (2003). Upravlenie riskami predpriiatiia. Moscow: TEIS, 247.
- Chernova, G. V., Kudriavtsev, A. A. (2005). Upravlenie riskami. Moscow: TK Velbi, Isd-vo Prospekt, 160.
- Chovushchian, E. O., Sidorov, M. A. (1999). Upravlenie riskom i ustoichivoe rasvitie. Moscow: Isdatel'stvo REA im. G. V. Plehanova, 528.
- What is SRM? (2011). RIMS – the risk management society. Risk an Insurance Management Society, Inc. Available: https://www.rims.org/resources/ERM/Documents/RIMS%20SRM%20Definition%20Final%20April%202011.pdf
- What is ERM? RIMS – the risk management society. Available: https://www.rims.org/resources/ERM/Pages/WhatisERM.aspx
- Guide to Integrated Risk Management. (12.05.2016). Government of Canada. Available: http://www.tbs-sct.gc.ca/hgw-cgf/pol/rm-gr/girm-ggir/girm-ggir02-eng.asp#toc3
- Glossary. (2012). Swiss Re. Available: http://reports.swissre.com/2012/financialreport/generalinformation/glossary.html
- Traynor, J., O’Hagan, M. (2005). Risk-based regulation in the UK. COSRA/IARC Conference Cartagena, 2 September 2005. Available: https://www.superfinanciera.gov.co/SFCant/seminarios/RISK%20BASED%20REGULATION%20IN%20THE%20UK%20-%20FSA.ppt
- Solvency II Glossary. (2007, March). Brussels: CEA – Groupe Consultatif. Available: http://ec.europa.eu/internal_market/insurance/docs/solvency/impactassess/annex-c08d_en.pdf
- Basel II – Integrated Risk Management Solution. Available: http://www.bim.edu/index/doc/integrated-risk-management-system.pdf
- Enterprise Risk Management – Integrated Framework. Executive Summary. (2004, September). Committee of Sponsoring Organizations of the Treadway Commission. Available: http://www.coso.org/documents/coso_erm_executivesummary.pdf
How to Cite
Copyright (c) 2016 Ірина Михайлівна Нєнно
This work is licensed under a Creative Commons Attribution 4.0 International License.
The consolidation and conditions for the transfer of copyright (identification of authorship) is carried out in the License Agreement. In particular, the authors reserve the right to the authorship of their manuscript and transfer the first publication of this work to the journal under the terms of the Creative Commons CC BY license. At the same time, they have the right to conclude on their own additional agreements concerning the non-exclusive distribution of the work in the form in which it was published by this journal, but provided that the link to the first publication of the article in this journal is preserved.