The Role of Enterprise Risk Management (ERM) Using ISO 31000 for the Competitiveness of a Company That Adopts the Value Chain (VC) Model and Life Cycle Cost (LCC) Approach

Enterprise risk management (ERM) is significant in running a company. ISO 31000 is one of the ERM types that are familiar. However, there are still pros and cons of ISO 31000. Thus, this study aimed to find out the responses of the Indonesian fintech lending companies managements in implementing ISO 31000. Specifically, this study tried to identify the problems in implementing ISO 31000:2018 to be implemented as ERM. Besides, it also discussed the benefits of the ISO 31000:2018 implementation from the companies' management's perspectives. The data were collected through questionnaires and interviews. The questionnaire results were quantified and interpreted in percentage, while the interview results were analyzed qualitatively using the interactive data analysis method. The study results showed that most of the companies' management believed that they had no significant problems implementing ISO 31000:2018. In addition, they felt that implementing ISO 31000:2018 as ERM gave many benefits in running the companies. The study's findings were discussed by connecting them with the current theories and empirical reviews. However, since the study was done qualitatively, a further study that involves quantitative study to measure the effectiveness of ISO 31000 empirically is needed to support the results of this study.

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Does the hiring of chief risk officers align with the COSO/ISO enterprise risk management frameworks?

International Journal of Accounting and Information Management ◽

10.1108/ijaim-04-2016-0037 ◽

2017 ◽

Vol 25 (3) ◽

pp. 274-295 ◽

Cited By ~ 2

Author(s):

Erastus Karanja

Keyword(s):

Risk Management ◽

Enterprise Risk Management ◽

Clear Understanding ◽

Press Releases ◽

Apparent Lack ◽

Content Type ◽

Business Operations ◽

Enterprise Risk ◽

The Press ◽

Iso 31000

Purpose There are two main industry-sanctioned enterprise risk management (ERM) models, that is, COSO 2004 and ISO 31000:2009, that firms refer to when implementing ERM programs. Taken together, the two ERM models specify that firms should implement ERM programs to meet a strategic need, improve operations and reporting or to comply with government regulations or industry best practices. In addition, the focus of ERM implementation should be either the subsidiary, business unit, division, firm/entity or global level. The purpose of this study is to investigate whether firms are aligning their ERM implementations with these tenets: strategy, operations, reporting, compliance and the level of implementation. Design/methodology/approach The proxy for ERM implementation is the hiring of a Chief Risk Officer (CRO). The research data come from a sample of 122 US firms that issued a press release following the hiring of a CRO between 2010 and 2014. The press releases were retrieved and aggregated through content analysis in LexisNexis Academic. Findings The results reveal that many ERM implementations are occurring at the firm/entity level, and with the exception of reporting, firms consider ERM to be a strategic firm resource capable of improving business operations and compliance initiatives. Originality/value There is a dearth of research studies specifically investigating whether ERM programs adopted by firms are aligned with the specification of COSO 2004 and ISO 31000:2009 frameworks. The apparent lack of a clear understanding of the alignment between the firm ERM programs and the industry’s ERM frameworks may limit the development and implementation of ERM and the eventual realization of the benefits associated with a successful ERM implementation.

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The Role of Quality Board of Directors in Enterprise Risk Management (ERM) Practices: Evidence from Binary Logistic Regression

International Journal of Business and Management ◽

10.5539/ijbm.v6n12p205 ◽

2011 ◽

Vol 6 (12) ◽

Cited By ~ 4

Author(s):

Wan Norhayate Wan Daud ◽

Hasnah Haron ◽

Daing Nasir Ibrahim

Keyword(s):

Risk Management ◽

Logistic Regression ◽

Board Of Directors ◽

Binary Logistic Regression ◽

Enterprise Risk Management ◽

Enterprise Risk

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Message from the chair on introducing enterprise risk management (ERM) to a company

International Journal of Disclosure and Governance ◽

10.1057/jdg.2013.12 ◽

2013 ◽

Vol 10 (2) ◽

pp. 98-104 ◽

Cited By ~ 2

Author(s):

John R S Fraser

Keyword(s):

Risk Management ◽

Enterprise Risk Management ◽

Enterprise Risk ◽

A Company

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The Role of Information Security in the Enterprise Risk Management Structure

Information Security Management Handbook ◽

10.1201/9781439833032-30 ◽

2007 ◽

pp. 326-339

Keyword(s):

Risk Management ◽

Information Security ◽

Enterprise Risk Management ◽

Management Structure ◽

Enterprise Risk ◽

Role Of Information

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The association between strategic cost management and enterprise risk management: A critical literature review

Corporate Ownership and Control ◽

10.22495/cocv9i1c1art3 ◽

2011 ◽

Vol 9 (1) ◽

pp. 184-195

Author(s):

Mohamed Elsayed ◽

Ananda Wickramainghe ◽

Marwa Abdel Razik

Keyword(s):

Risk Management ◽

Value Chain ◽

Positive Relationship ◽

Cost Management ◽

Enterprise Risk Management ◽

Value Chain Analysis ◽

Total Quality ◽

Strategic Cost Management ◽

Chain Analysis ◽

Enterprise Risk

Reviewing literature and application of strategic cost management (SCM) and enterprise risk management (ERM) are critical and significant for corporate management to facilitate top management to employ appropriate SCM and ERM processes and systems especially in occurrence of constant and regular business turn around, crises and turbulence in recent time in world of business. This paper revisits and reviews the association between strategic cost management and enterprise risk management. Based on this review, the following propositions were developed; firm, which adopted SCM, is more likely to adopt ERM approach, there is a positive relationship between audit type and the association between ERM and SCM, and there is a positive relationship between company size and the association between ERM and SCM. The association between ERM and SCM differs from industry to another. The study also develops a framework for SCM composes of the following items: SWOT analysis, benchmarking, competitive advantage, value chain analysis, implement strategy that reduce cost during the value chain analysis by using target costing, accounting based-costing, accounting based-management, just in time, total quality management, life cycle, theory of constraints, and measure performance by using balanced scorecard.

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