Enterprise Risk Management in an Uncertain Environment

Authors

DOI:

https://doi.org/10.26668/businessreview/2023.v8i4.1700

Keywords:

Risk Governance, Risk Management, Stress Testing, Inflation, Corporate Strategy, Diversification, Restructuring

Abstract

Purpose: The issue of enterprise risk management in an uncertain environment is a priority for the corporate sector to ensure liquidity and value of financial assets and operations in the selected market segment.

 

Theoretical framework: The problem of enterprise risk management is to find an effective practice of using risk management systems that can minimize and prevent potential risks both internally and externally.

 

Method: The article aims to analyze enterprise risk management and outline the key means of ensuring the stability of commercial activities with possible optimization of the work of functional units. An important area of the study is the identification of modern practical risk management tools and means of optimizing corporate activities in the context of global economic instability.

 

Results and conclusion: The results of the study indicate the characteristic practices and comprehensive means of enterprise risk management to ensure its microeconomic stability. The prospects for risk management as a tool for ensuring it, as analyzed in the study, are constantly evolving and changing due to the emergence of innovative information technologies, which are one of the key tools for forecasting, modeling, and analyzing enterprise activities.

 

Search implications: Attention is paid to the issue of the current economic environment and the quality of financial resource allocation in an unstable global economic situation.

 

Originality/value: The obtained results of the study can be used by corporate institutions to improve their risk management policies and contribute to the stable operation of the enterprise even in the face of global uncertainty in the environment.

Downloads

Download data is not yet available.

References

Abideen, Ahmed Zainul, Fazeeda Binti Mohamad, and Yudi Fernando. 2020. Lean simulations in production and operations management—A systematic literature review and bibliometric analysis. Journal of Modelling in Management

Almeida, K. X. de, Santos, R. C. dos, Mesquita, M. do S. S., & Lima, R. A. de A. de. (2020). Agency conflicts and asymmetry of accounting information: between decision making and corporate management. International Journal of Professional Business Review, 5(2), 234–255. https://doi.org/10.26668/businessreview/2020.v5i2.199

Annamalah, Sanmugam, Murali Raman, Govindan Marthandan, and Aravindan Kalisri Logeswaran. 2018. Implementation of Enterprise Risk Management (ERM) Framework in Enhancing Business Performances in Oil and Gas Sector.

Chen, Y., Chuang, Y., Huang, H., & Shih, J. 2020. The value of implementing enterprise risk management: Evidence from Taiwan’s financial industry. The North American Journal of Economics and Finance, 54, 100926. https://doi.org/10.1016/j.najef.2019.02.004

Durán Santomil, Pablo, and Luis Otero González. 2020. Enterprise risk management and Solvency II: The system of governance and the Own Risk and Solvency Assessment. Journal of Risk Finance 21: 317–32.

Farrell, Mark, and Ronan Gallagher. 2019. Moderating influences on the ERM maturity-performance relationship. Research in International Business and Finance 47: 616–28

Fernando, A.A.J., Lock, K.L., Gamage, C.T, 2014. A proposed research framework: Effectiveness of internal control system in state commercial banks in Sri Lanka, International Journal of Scientific Research and Innovative Technology, 1(5)

Frigo, M.L., and Anderson, R.J. 2011. Strategic Risk Management: A Foundation for Improving Enterprise Risk Management and Governance, The Journal of Corporate Accounting and Finance, Wiley Periodicals, Inc., pp. 81-88

Haradhan, M. 2020. Quantitative Research: A Successful Investigation in Natural and Social Sciences. Journal of Economic Development, Environment, and People, 9(4), 52-79.

Hiebl, Martin R. W., Christine Duller, and Herbert Neubauer. 2019. Enterprise risk management in family firms: Evidence from Austria and Germany. Journal of Risk Finance 20: 39–58

Karunarathne, E.A.C.P., and Zhang, J. 2017. Implications of New Technological Adaptions on Switching Barriers: An Empirical Study of Mobile Telecommunication Subscribers in Sri Lanka, International Journal of Research in Business and Social Science, 6 (1), 2017:78-88. https://doi.org/10.20525/ijrbs.v6i1.642

Kesavan, H. B., & Balamurugan, S., (2022). Emotional Intelligence and Relationship Management Among the Employees in Automobile Retail Showrooms. International Journal of Professional Business Review, 7(6), e0889. https://doi.org/10.26668/businessreview/2022.v7i6.889

Khalil-Oliwa, Oliwia. 2019. Effects of enterprise risk management (ERM) implementation. A comparative case study in the conditions of the Polish economy. Ad Alta-Journal of Interdisciplinary Research 9: 245–50

Latysheva, O., Rovenska, V., Smyrnova, I., Nitsenko, V., Balezentis, T., & Streimikiene, D. (2020). Management of the sustainable development of machine-building enterprises: A sustainable development space approach. Journal of Enterprise Information Management, 34(1), 328-342. doi:10.1108/JEIM-12-2019-0419

Liff, Roy, and Gunnar Wahlstrom. 2018. The usefulness of enterprise risk management in two banks. Qualitative Research in Accounting and Management 50: 124–50.

López, J.R. 2021. How Can Enterprise Risk Management Help in Evaluating the Operational Risks for a Telecommunications Company? Journal of Risk and Financial Management, 14(139), 1-26. https:// doi.org/10.3390/jrfm14030139

Malik, M.F., Zaman, M., & Buckby, S. 2020. Enterprise risk management and firm performance: Role of the risk committee. Journal of Contemporary Accounting & Economics, 16(1), 100178.

Mustafa, E.C., Murat, C., and Necati, E.E., 2016. The Role of Social Media in Crisis Communication and Crisis Management, International Journal of Research in Business & Social Science, 5 (3), 111-120. https://doi.org/10.20525/ijrbs.v5i3.279

Pogodayev, S. E. (2013). Marketing of works as a source of the new hybrid offerings in widened marketing of goods, works and services. Journal of Business and Industrial Marketing, 28(8), 638-648. doi:10.1108/JBIM-04-2012-0069

Rubino, M. 2018. Comparison of the Main ERM Frameworks: How Limitations and Weaknesses can be Overcome Implementing IT Governance. International Journal of Business and Management, 13(12), 203-214. https://doi.org/10.5539/ijbm.v13n12p203

Sax, Johanna, and Torben Juul Andersen. 2019. Making risk management strategic: Integrating enterprise risk management with strategic planning. European Management Review 16: 719–40

Shad, Muhammad Kashif, Fong-Woon Lai, Chuah Lai Fatt, Jiff Jaromir Klemes, and Awais Bokhari. 2019. Integrating sustainability reporting into enterprise risk management and its relationship with business performance: A conceptual framework. Journal of Cleaner Production 208: 415–25

Shvets, V. Y., Rozdobudko, E. V., & Solomina, G. V. (2013). Aggregated methodology of multicriterion economic and ecological examination of the ecologically oriented investment projects. Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu, 3, 139-144

Ten Six Consulting. 2021. The Benefits of ERM. Retrieved 22 August 2021, from: https://tensix.com/2021/02/the-benefits-of-enterprise-risk-management-erm/

Tjahjono, Subagio. 2017. Enterprise Risk Management implementation maturity in non-bank and financial companies. Etikonomi 16: 173–86

Downloads

Published

2023-04-14

How to Cite

Kulinich, T., Andrushko, R., Prosovych, O., Sternyuk, O., & Tymchyna, Y. (2023). Enterprise Risk Management in an Uncertain Environment. International Journal of Professional Business Review, 8(4), e01700. https://doi.org/10.26668/businessreview/2023.v8i4.1700