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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| Format: | Article |
| Language: | English |
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MDPI AG
2024-12-01
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| Series: | Risks |
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| 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). |
| format | Article |
| id | doaj-art-3bc1105f8124457594a32e6dfca794ec |
| institution | DOAJ |
| issn | 2227-9091 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| 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 |