Enterprise Risk Management - An Overview
P S Subha Prada
Enterprise risk management has emerged as a new paradigm for managing the portfolio of risks that organizations are vulnerable to, as policy makers continue to focus on mechanisms to improve corporate governance and risk management. The nature of risk management has undergone a rapid and remarkable transformation over the past few decades, from a primitive defensive approach to the cotemporary strategic and dynamic approach. Enterprise risk management encompasses an overall risk management approach to business risks. The term succeeds earlier approaches to risk management like corporate risk management, business risk management, holistic risk management, strategic risk management and integrated risk management. Although these terms differ in their focus to a small extent, the general concepts are quite similar. The emergence of Enterprise Risk Management can be attributed to i) the enhanced scope of corporate governance that covered all risks that a firm takes following many high profile corporate failures and ii) the focus of modern strategic planning on shareholder value concepts derived from finance theory, where risk plays a prominent role. The present paper discusses enterprise risk management and its relevance in the present context.
Enterprise Risk Management, Corporate Governance, Risk Management
Enterprise Risk Management - An Overview . P S Subha Prada. 2017. IJIRCT, Volume 3, Issue 1. Pages 1-4. https://www.ijirct.org/viewPaper.php?paperId=IJIRCT1701003