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The challenges of and solutions for implementing enterprise risk management

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  • Fraser, John R.S.
  • Simkins, Betty J.

Abstract

Enterprise risk management (ERM) began to take root in the late 1990s and has since become generally recognized as an expectation of good management and corporate governance. However, as evidenced by surveys and research, many companies still struggle with ERM implementation. This article explores the challenges companies face when implementing ERM and offers solutions for firms struggling with the concepts and execution. We draw upon Hydro One's experience in achieving ERM maturity as a best practice case study. The company's ERM methods have been researched and documented extensively. With over 15 years of ERM success, Hydro One is an excellent organization to benchmark for ERM best practices.

Suggested Citation

  • Fraser, John R.S. & Simkins, Betty J., 2016. "The challenges of and solutions for implementing enterprise risk management," Business Horizons, Elsevier, vol. 59(6), pages 689-698.
    • Handle: RePEc:eee:bushor:v:59:y:2016:i:6:p:689-698
    DOI: 10.1016/j.bushor.2016.06.007
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    References listed on IDEAS

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    1. Tom Aabo & John R. S. Fraser & Betty J. Simkins, 2005. "The Rise and Evolution of the Chief Risk Officer: Enterprise Risk Management at Hydro One," Journal of Applied Corporate Finance, Morgan Stanley, vol. 17(3), pages 62-75, June.
    2. John R. S. Fraser & Betty J. Simkins, 2007. "Ten Common Misconceptions About Enterprise Risk Management," Journal of Applied Corporate Finance, Morgan Stanley, vol. 19(4), pages 75-81, September.
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    Cited by:

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    2. Caraiman Adrian-Cosmin & Mates Dorel, 2020. "Risk management in corporate governance," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 14(1), pages 182-201, July.
    3. Ivana Dvorski Lacković & Nataša Kurnoga & Danijela Miloš Sprčić, 2022. "Three-factor model of Enterprise Risk Management implementation: exploratory study of non-financial companies," Risk Management, Palgrave Macmillan, vol. 24(2), pages 101-122, June.
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    5. Adrian-Cosmin Caraiman, 2020. "The Risk Management in Financing Decisions in Corporate Governance," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 859-865, August.
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    7. Carmen Nadia Ciocoiu & Adina Liliana Prioteasa & Sofia Elena Colesca, 2020. "Risk Management Implementation for Sustainable Development of Romanian SMEs: A Fuzzy Approach ...........," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(55), pages 726-726, August.
    8. José Ruiz-Canela López, 2021. "How Can Enterprise Risk Management Help in Evaluating the Operational Risks for a Telecommunications Company?," JRFM, MDPI, vol. 14(3), pages 1-26, March.
    9. Jonek-Kowalska, Izabela & Nawrocki, Tomasz L., 2019. "Holistic fuzzy evaluation of operational risk in polish mining enterprises in a long-term and sectoral research perspective," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
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    11. Ena Pecina & Danijela Miloš Sprčić & Ivana Dvorski Lacković, 2022. "Qualitative Analysis of Enterprise Risk Management Systems in the Largest European Electric Power Companies," Energies, MDPI, vol. 15(15), pages 1-19, July.
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    13. Przetacznik Sylwia, 2022. "Key Success Factors of Enterprise Risk Management Systems: Listed Polish Companies," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 30(1), pages 91-114, March.
    14. CARAIMAN Adrian, 2020. "The Risk Management Process In Corporate Guvernance," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 189-198, July.
    15. Sorin Gabriel Anton & Anca Elena Afloarei Nucu, 2020. "Enterprise Risk Management: A Literature Review and Agenda for Future Research," JRFM, MDPI, vol. 13(11), pages 1-22, November.
    16. John Fraser & Rob Quail & Betty Simkins, 2021. "The History of Enterprise Risk Management at Hydro One Inc," JRFM, MDPI, vol. 14(8), pages 1-13, August.
    17. Grygoriy Shamborovskyi & Yuliia Nehoda & Nataliya Demidova & Volodymyr Tarashchenko & Svitlana Breus, 2021. "Modeling Study on Risk Identification in the Process of Anti-Crisis Enterprise Management," JRFM, MDPI, vol. 14(2), pages 1-14, February.
    18. Arwanto Harimas Ginting & Ida Widianingsih & Rahman Mulyawan & Heru Nurasa, 2023. "Village Government’s Risk Management and Village Fund Administration in Indonesia," Sustainability, MDPI, vol. 15(24), pages 1-17, December.

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