Enterprise Risk Management: Improving Embedded Risk Management and Risk Governance

We argue for an integrated, decision-oriented enterprise risk management (ERM) system focused on value drivers rather than risk minimization and using quantitative risk aggregation based on the best available information. Our holistic view on ERM includes cultural, organizational, and technical aspe...

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Main Authors: Werner Gleißner, Thomas B. Berger
Format: Article
Language:English
Published: MDPI AG 2024-12-01
Series:Risks
Subjects:
Online Access:https://www.mdpi.com/2227-9091/12/12/196
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author Werner Gleißner
Thomas B. Berger
author_facet Werner Gleißner
Thomas B. Berger
author_sort Werner Gleißner
collection DOAJ
description We argue for an integrated, decision-oriented enterprise risk management (ERM) system focused on value drivers rather than risk minimization and using quantitative risk aggregation based on the best available information. Our holistic view on ERM includes cultural, organizational, and technical aspects, presenting seven areas for more effective risk governance and resilience grounded in a robust enterprise framework. Our analysis, supported by a structured literature review, covers these seven key areas for ERM development. Our review shows that risk aggregation, quantification, and decision-making support are only covered by a few publications. The paper offers insights on linking risk management with strategic decision-making using risk aggregation techniques (Monte Carlo simulation).
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spelling doaj-art-3bc1105f8124457594a32e6dfca794ec2025-08-20T02:43:45ZengMDPI AGRisks2227-90912024-12-01121219610.3390/risks12120196Enterprise Risk Management: Improving Embedded Risk Management and Risk GovernanceWerner Gleißner0Thomas B. Berger1Faculty of Business and Economics, TUD Dresden University of Technology, 01062 Dresden, GermanyDepartment of Business and Engineering, Faculty of Engineering, Baden-Wuerttemberg Cooperative State University (DHBW Stutgart), Lerchenstr. 1, 70174 Stuttgart, GermanyWe argue for an integrated, decision-oriented enterprise risk management (ERM) system focused on value drivers rather than risk minimization and using quantitative risk aggregation based on the best available information. Our holistic view on ERM includes cultural, organizational, and technical aspects, presenting seven areas for more effective risk governance and resilience grounded in a robust enterprise framework. Our analysis, supported by a structured literature review, covers these seven key areas for ERM development. Our review shows that risk aggregation, quantification, and decision-making support are only covered by a few publications. The paper offers insights on linking risk management with strategic decision-making using risk aggregation techniques (Monte Carlo simulation).https://www.mdpi.com/2227-9091/12/12/196enterprise risk managementrisk governancerisk aggregationvalue-based managementcorporate planningresilience
spellingShingle Werner Gleißner
Thomas B. Berger
Enterprise Risk Management: Improving Embedded Risk Management and Risk Governance
Risks
enterprise risk management
risk governance
risk aggregation
value-based management
corporate planning
resilience
title Enterprise Risk Management: Improving Embedded Risk Management and Risk Governance
title_full Enterprise Risk Management: Improving Embedded Risk Management and Risk Governance
title_fullStr Enterprise Risk Management: Improving Embedded Risk Management and Risk Governance
title_full_unstemmed Enterprise Risk Management: Improving Embedded Risk Management and Risk Governance
title_short Enterprise Risk Management: Improving Embedded Risk Management and Risk Governance
title_sort enterprise risk management improving embedded risk management and risk governance
topic enterprise risk management
risk governance
risk aggregation
value-based management
corporate planning
resilience
url https://www.mdpi.com/2227-9091/12/12/196
work_keys_str_mv AT wernergleißner enterpriseriskmanagementimprovingembeddedriskmanagementandriskgovernance
AT thomasbberger enterpriseriskmanagementimprovingembeddedriskmanagementandriskgovernance