IDEAS home Printed from https://ideas.repec.org/a/pal/ijodag/v15y2018i1d10.1057_s41310-018-0033-3.html
   My bibliography  Save this article

ERM and strategic planning: a change in paradigm

Author

Listed:
  • Elizabeth M. Pierce

    (Saginaw Valley State University)

  • James Goldstein

    (Canisius College)

Abstract

In 2014, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) announced that they would embark on the revision of their Enterprise Risk Management—Integrated Framework (2004). After 2 years of deliberations and a 6-month evaluation period, COSO has finally released its Enterprise Risk Management: Integrating Strategy and Performance on September 6, 2017. One of the primary issues that arose after the release of the original Framework was the awareness that organizations have failed to adopt an integrated treatment of Enterprise Risk Management (ERM) and strategic planning, termed Strategic Risk Management (SRM). This is especially troubling as the benefits of SRM have been recognized by academics, practitioners, and regulators. The new Framework takes significant steps to promote a mind shift, or paradigm change, to a more integrative approach to ERM and strategic planning. Pierce and Goldstein, in their previous work (in: 14th global conference on business and economics, Oxford, UK, 1–2 October, 2016), highlighted language and diagrams in the original Framework that may have led to the siloed treatment of both processes. In this paper, we examine changes in the new Framework to determine whether they sufficiently address these changes in order to move organizations more toward Strategic Risk Management.

Suggested Citation

  • Elizabeth M. Pierce & James Goldstein, 2018. "ERM and strategic planning: a change in paradigm," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 15(1), pages 51-59, February.
    • Handle: RePEc:pal:ijodag:v:15:y:2018:i:1:d:10.1057_s41310-018-0033-3
    DOI: 10.1057/s41310-018-0033-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41310-018-0033-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41310-018-0033-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chiara Verbano & Karen Venturini, 2011. "Development paths of risk management: approaches, methods and fields of application," Journal of Risk Research, Taylor & Francis Journals, vol. 14(5), pages 519-550, May.
    2. Frank Schiller & George Prpich, 2014. "Learning to organise risk management in organisations: what future for enterprise risk management?," Journal of Risk Research, Taylor & Francis Journals, vol. 17(8), pages 999-1017, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Munther Al-Nimer & Sinan S. Abbadi & Ahmad Al-Omush & Habib Ahmad, 2021. "Risk Management Practices and Firm Performance with a Mediating Role of Business Model Innovation. Observations from Jordan," JRFM, MDPI, vol. 14(3), pages 1-20, March.
    3. Novaković Vesna & Milovanović Mirjana & Gligorić Dragan, 2022. "Possibilities for Public Sector Management Improvement by the Digitalization of Financial Management and Control System in the Western Balkan Countries," Journal of Forensic Accounting Profession, Sciendo, vol. 2(2), pages 56-77, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hatem Elleuch & Wafik Hachicha & Habib Chabchoub, 2014. "A combined approach for supply chain risk management: description and application to a real hospital pharmaceutical case study," Journal of Risk Research, Taylor & Francis Journals, vol. 17(5), pages 641-663, May.
    2. Judit Oláh & Zuzana Virglerova & József Popp & Jana Kliestikova & Sándor Kovács, 2019. "The Assessment of Non-Financial Risk Sources of SMES in the V4 Countries and Serbia," Sustainability, MDPI, vol. 11(17), pages 1-19, September.
    3. Lenka Syrová & Jindřich Špička, 2023. "Exploring the indirect links between enterprise risk management and the financial performance of SMEs," Risk Management, Palgrave Macmillan, vol. 25(1), pages 1-27, March.
    4. Chi Jin & Bo Li & Zhaoying Ye & Pengcheng Xiang, 2021. "Identifying the Non-Traditional Safety Risk Paths of Employees from Chinese International Construction Companies in Africa," IJERPH, MDPI, vol. 18(4), pages 1-19, February.
    5. Lorren K. Haywood & Greg G. Forsyth & Willem J. Lange & Douglas H. Trotter, 2017. "Contextualising risk within enterprise risk management through the application of systems thinking," Environment Systems and Decisions, Springer, vol. 37(2), pages 230-240, June.
    6. Hafizah Zainol Abidin & Siti Zaleha Abdul Rasid & Haliyana Khalid & Rohaida Basiruddin & Shathees Baskaran, 2019. "Effectiveness of Enterprise Risk Management Practices: A Case Study," Business Management and Strategy, Macrothink Institute, vol. 10(2), pages 213-233, December.
    7. Marshall, Alasdair & Ojiako, Udechukwu & Wang, Victoria & Lin, Fenfang & Chipulu, Maxwell, 2019. "Forecasting unknown-unknowns by boosting the risk radar within the risk intelligent organisation," International Journal of Forecasting, Elsevier, vol. 35(2), pages 644-658.
    8. Nawrocki, Tomasz Leszek & Jonek-Kowalska, Izabela, 2016. "Assessing operational risk in coal mining enterprises – Internal, industrial and international perspectives," Resources Policy, Elsevier, vol. 48(C), pages 50-67.
    9. Therese R. Viscelli & Mark S. Beasley & Dana R. Hermanson, 2016. "Research Insights About Risk Governance," SAGE Open, , vol. 6(4), pages 21582440166, November.
    10. Monia Castellini & Vincenzo Riso, 2020. "Risk Management and Management Control System, a close relationship in process: Isomorphism in the Italian Municipalities," Working Papers 2020039, University of Ferrara, Department of Economics.
    11. Ana Luís & Kenisha Garnett & Simon J. T. Pollard & Fiona Lickorish & Simon Jude & Paul Leinster, 2021. "Fusing strategic risk and futures methods to inform long-term strategic planning: case of water utilities," Environment Systems and Decisions, Springer, vol. 41(4), pages 523-540, December.
    12. Amulya Gurtu & Jestin Johny, 2021. "Supply Chain Risk Management: Literature Review," Risks, MDPI, vol. 9(1), pages 1-16, January.
    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. Lam, C.Y. & Cruz, A.M., 2019. "Risk analysis for consumer-level utility gas and liquefied petroleum gas incidents using probabilistic network modeling: A case study of gas incidents in Japan," Reliability Engineering and System Safety, Elsevier, vol. 185(C), pages 198-212.
    15. Ferreira de Araújo Lima, Priscila & Crema, Maria & Verbano, Chiara, 2020. "Risk management in SMEs: A systematic literature review and future directions," European Management Journal, Elsevier, vol. 38(1), pages 78-94.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:ijodag:v:15:y:2018:i:1:d:10.1057_s41310-018-0033-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.